Brent crude went up to $90 per barrel on Friday, October 13, according to a study of crude oil prices around the world, and it has remained above that level ever since.
The Times reported that the price of a barrel of Brent crude as of Sunday morning, October 15 was $90.89.
There are many causes for the current spike in crude oil prices, but the main one is the escalating tensions in the Middle East as a result of the continuous confrontation between Israel and Hamas.
Concerns about a possible ground invasion by Israel during this conflict have prompted preparations and the mobilization of sizable armed forces.
Concerns have also been raised regarding possible delays to the region’s oil output as a result of the conflict between Israel and Hamas. The International Energy Agency recently noted that there is a great deal of uncertainty in the market scenario.
They emphasized, however, that the ongoing war has not yet had a noticeable effect on the actual supply of oil.
It is significant to note that President Vladimir Putin emphasized OPEC’s steadfast commitment to safeguarding stability in the world oil market during the recent Russian Energy Week International Forum held in Moscow, particularly in the face of growing tensions in the Middle East.
He emphasized the commitment of all OPEC members to keeping their agreements and skillfully overcoming any difficulties that may arise throughout the process.
Putin’s comments highlighted the OPEC countries’ commitment to working together to keep the oil market stable in the face of geopolitical unpredictability.
OPEC nations are currently leading a coordinated effort to cut oil production, with important contributions also coming from Russia and Saudi Arabia, two other key players in the world oil market.
These production reductions have been in place for a while and will continue through the end of 2023, demonstrating the unwavering dedication of both Saudi Arabia and Russia to this strategic endeavour.
The world’s oil prices noticed a substantial increase, peaking at $97 per barrel at one point, as a direct result of these significant oil-producing countries cutting back on their oil production.
Oil prices, however, have slightly stabilized after this upswing and have fallen to about $84 per barrel as of last week.
Therefore, market dynamics and oil prices on a worldwide scale have been impacted by measures to reduce production.
