Middle East Conflict Drives Oil Prices Above $100 for First Time Since July
The escalating conflict in the Middle East is having a profound impact on global energy markets. The Houthi rebels have taken control of Mokka, a strategically located city on the Red Sea, and are advancing towards Bab el-Mandeb, a crucial shipping route that connects the Red Sea to the Indian Ocean.
The Saudi oil production has decreased over the past month to its lowest level since 1990, which is contributing to the rising prices of Brent oil. The price of a barrel of Brent oil rose to $105.72 on Thursday, while US WTI oil increased to $100.39. This marks the first time oil prices have surpassed the $100 mark since July 24.
European gas prices are also on the rise, with the price at its highest level since late 2022. The benchmark TTF futures market in Amsterdam saw a price of around €81.50 per megawatt-hour, an increase of about 2.5% from the previous day. This poses a problem for Europe as storage levels are currently only 67% full, with Germany's storage levels at just 55%.