Photo: Haidar El Asadi/AA/picture alliance
The tension in the Middle East is shaking not only the political map, but also the energy market, which is the "blood vessels" of the world economy. Gas and oil prices on world exchanges are breaking records in recent years. Zamin.uz analyzes the latest situation in the energy market, based on data from international agencies.
On Monday, March 9, Reuters reported that gas supply futures in Europe reached their highest point in the last three years. The price of blue fuel increased by 19% and amounted to 63 euros per megawatt-hour. This is significantly higher than just a week ago.
"Thrombus" in the supply chain and the Strait of Hormuz
The sharp rise in prices is due to concerns that the US and Israel's military actions against Iran will not stop soon.
- Liquefied Gas (LPG): Tankers arriving from Qatar and the UAE are finding it difficult to reach Europe due to instability in the Strait of Hormuz.
- Regional demand: Due to restrictions on Israeli pipelines, Egypt and Jordan have also become active buyers in the LNG market, which is intensifying competition.
Historical comparison: How severe is the crisis?
Although the current figures seem alarming, Bloomberg experts recommend a cold assessment of the situation. Current prices are still far from the peak of 300 euros during previous energy hurricanes. Even the figure of 90 euros at the beginning of 2022 was higher than it is now.
EU position: According to the European Commission, EU countries have sufficient fuel reserves. According to the official statement: "We are more concerned not with the lack of supplies, but with the extremely high energy prices."
Will strategic reserves be activated?
According to the Financial Times, the finance ministers of the G7 countries are discussing the release of strategic reserves at the disposal of the International Energy Agency (IEA) in the event of an emergency.
- The IEA members have oil reserves totaling 1.2 billion barrels.
- US officials are proposing to release a quarter of these reserves (300-400 million barrels) to curb prices.
"Flame" in the oil market
On March 9, the price of Brent crude oil on the London Stock Exchange unexpectedly jumped by 26%, reaching $116.6 per barrel. In New York, WTI crude oil hit the $115 mark.
The escalation of the situation was triggered by Israel's strike on Iranian energy facilities on March 7, in response to Tehran's threat of an attack on the oil infrastructure in the Persian Gulf. The Iranian side openly warned: "If you can endure oil prices exceeding $200, please continue the war."
We will continue to monitor how such tension in the global energy market will affect fuel prices in the coming days. Do you really think the price of oil could reach $200?
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