The issue of today's large increase (almost 30%) in the price of crude oil in international prices, which led to the crushing of the psychological threshold of 100 dollars per barrel (it is already at 119 dollars, with an upward trend) causes great concern for fuel prices in the retail market in the coming period.
The looming large increase in the prices of gasoline and diesel (also for the needs of the EAC), as well as natural gas for electricity production, confirm those who are worried about a new round of large increases in basic products and services. Europe and other regions of the world face a visible risk of severe inflationary trends.
Reuters reported as of Monday morning that the war could leave consumers and businesses worldwide facing weeks or months of higher fuel prices, even if the week-long conflict ends quickly as suppliers face plant damage, supply chain problems and increased risks to shipping.
"The next critical point will be whether they will eventually reach a point where they will have to start shutting down oil wells, which will not only affect production even more, but will also delay the response once the conflict is defused. That would potentially hold those prices for much longer," Daniel Hynes, senior commodity strategist at ANZ, told Reuters.
Iraq's oil production from the main southern oil fields has fallen by 70% to just 1.3 million barrels a day as the country is unable to export oil through the Strait of Hormuz due to the war in Iran, three industry sources said on Sunday. Crude oil storage has reached maximum capacity, an official at the state-owned Basra oil company said.
The Kuwait Petroleum Corporation began cutting oil production on Saturday and declared force majeure on shipments, although it did not say how much production would stop. Iran's attacks on oil infrastructure across the region continued.
The Fujaira Press Office reported that a fire broke out in the UAE's Fujaira oil industry zone due to falling debris, with no injuries reported.
Saudi Arabia's Ministry of Defense told X that it intercepted a drone heading towards the Shaybah oil field. The Israeli army has threatened to kill anyone who replaces the deceased Ali Khamenei.
