Expecting Israeli revenge for Iran’s missile attack, market players are locking in future oil supplies. Therefore, the price of raw materials continued to rise and on the afternoon of October 7, it crossed the $80 level, for the first time since August.
On the afternoon of October 7, the price of benchmark Brent oil exceeded $80 per barrel. It is already the second week that raw materials have become more expensive. Added $8 to the price after Iran’s attack on Israel. The market is waiting for Israel’s revenge and fears that it will affect the country’s oil facilities. These conversations were confirmed by the President of the United States. joe biden.
“Brent crude oil has returned to the $80 mark, and options market activity shows increased demand to hedge the risk of higher gains amid fears of minor or, at worst, major disruptions in supply from the Middle East”. — Saxo Bank’s head of commodities strategy told Reuters Ole Hansen.
The market is partly limited by the fact that OPEC+ countries continue to maintain reduced production and their free capacity amounts to more than 7 million barrels per day. While Iranian exports do not exceed 1.7 million barrels.
Although analysts doubt that Iranian oil facilities will suffer a serious blow, since the United States does not want this, Iran itself is preparing. On Sunday, the Minister of Petroleum Mohsen Paknejad He visited Khark Island in the Persian Gulf. It is the main oil export terminal in the country.
On the island, Minister of Petroleum held talks with the Commander of the Navy Mohammad Hossein Bargahi on the safety of gas production platforms in the South Pars field in the Persian Gulf, the Shana agency reported.
Reuters notes that most of Iran’s oil and gas facilities are located in the south of the country, where the terminal on Kharg Island is located. 23 million barrels can be stored there.
