The price of Brent oil reached $116.08 per barrel in trading on Friday, marking the highest reported price for this type of oil on that day. The price of Brent oil futures for delivery in December traded at this level with an increase of $1.20. Additionally, the more actively traded Brent oil contract for delivery in January rose by $1.39 to $112.19. West Texas Intermediate (WTI) crude oil also increased by $1.37 to $103.37 per barrel.
Developments in the Strait of Hormuz and rising oil prices
Studies show that the price of Brent oil has increased by nearly 11% in October, while West Texas Intermediate oil has risen by about 14%. Growing concerns about the security of energy transportation routes and the continuation of military conditions around the Strait of Hormuz are considered the main factors driving this upward trend. This strait, as one of the most important oil and fuel transportation routes in the world, accounts for a significant portion of energy exports from the Persian Gulf region.
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The UK Maritime Trade Operations (UKMTO) reported on Friday that an incident occurred involving an oil tanker in the Strait of Hormuz, which has once again raised concerns about the security of maritime transport and the potential disruption of oil supply. The continuation of military actions around this strait has led traders to consider higher prices for potential supply risks.
Expert opinions and future outlook for oil prices
Saul Kavonic, head of energy research at MST Market, believes that the continuation of military actions around the Strait of Hormuz is one of the main reasons for keeping oil prices at high levels. He stated that crude oil prices are likely to fluctuate between $70 and $90 per barrel if the conflicts come to an end. This is while prior to the onset of the war against Iran, oil prices were in the range of $60 to $70.
Ole Hansen, head of commodity strategy at Saxo Bank, announced at a press conference in Singapore that increasing uncertainties have made predicting the future path of oil prices difficult. According to him, even if geopolitical risks decrease, there is no immediate likelihood of oil prices returning to previous levels. However, the continued disruption in supply or increasing security uncertainties could keep prices elevated for a longer period.
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