economy
Oil price rises back above $100 a barrel as energy market may be past ‘point of no return’
Crude rises after US strikes on Iran dampen hopes of peace deal, with experts saying talks appear stuck in ‘endless loop’
TL;DR
- Oil prices rose above $100 a barrel after US strikes on Iran dampened hopes for a peace deal.
- Experts suggest the global energy market may have passed a 'point of no return' due to the conflict.
- Weeks of disruption to oil exports have eroded global stockpiles, while demand is expected to increase.
- The conflict and blockade of the Strait of Hormuz have led to significant reductions in oil exports.
- Draws from emergency oil stockpiles have helped but are expected to end, with inventories described as 'critically low'.
- Global oil demand has fallen, but a substantial shortfall in crude supplies persists.
- Gas reserves in Europe are also under pressure, with storage levels below average.
- Higher oil prices are reflected at the pump, with UK petrol prices at their highest since the conflict began.
- Increased gas prices due to the Hormuz blockade are forecast to raise household energy costs in Great Britain.