• UGI USER
  • Apr 12, 2024
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OIL PRICES SURGE DUE TO ESCALATING TENSIONS IN WEST ASIA.

Why in the news?

Oil prices surge amid escalating tensions in West Asia, raising concerns about potential supply disruptions and geopolitical instability.

Oil Prices Surge Amid West Asia Tensions:

  • Oil prices surged on Thursday, adding to gains from the prior day.
  • Concerns mount over escalating tensions in West Asia, with potential involvement of Iran.
  • Iran’s significant role as the third-largest oil producer in OPEC raises supply disruption fears.
  • Market participants are factoring in possible risks associated with further escalation.
  • Early trading saw Brent crude futures climb by 30 cents to $90.78 per barrel.
  • This uptick follows a more than 1% increase on Wednesday driven by concerns of stalled ceasefire negotiations.
source:lotusarise
Understandind Organization of the Petroleum Exporting Countries (OPEC):

  • Formation: Established in 1960 at the Baghdad Conference by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
  • Objective: Manages oil supply to stabilise prices globally, benefiting both producers and consumers.
  • Membership: Open to substantial oil-exporting nations; currently has 14 member countries including Saudi Arabia, Iran, Iraq, and UAE.

source:https://indianexpress.com/article/business/commodities/brent-wti-crude-oil-price-escalation-in-middle-east-tension-9263636/