Oil price touches $100 a barrel as energy market may be past ‘point of no return’
Summary
Oil prices recently reached $100 a barrel after new US attacks on Iran raised fears about Middle East tensions and supply disruptions. Experts warn that global oil supplies are very tight and that demand is expected to grow, which may lead to higher prices and possible emergency actions soon.Key Facts
- Oil prices hit $100 a barrel temporarily following US strikes on Iran missile sites and ships.
- The strait of Hormuz blockade has cut about 14.4 million barrels of oil a day from Gulf exports.
- Despite supply cuts, oil prices had stayed below earlier high levels due to hopes of a peace deal.
- Global oil reserves have dropped significantly due to disrupted exports and ongoing demand.
- The International Energy Agency warns the world may enter a "red zone" of oil shortage in July and August.
- Saudi Aramco says extended closure of the Hormuz strait could cause supply problems lasting into next year.
- Emergency oil stock releases helped but will likely end by July, leaving inventories very low.
- Rising oil prices are increasing pump prices, with UK petrol prices reaching their highest level since the conflict began.
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