Oil Prices Stabilize after Brief Surge Past $100
Oil prices have stabilized after a significant rise on Thursday, when they briefly surpassed USD 100 per barrel. The Brent price settled at USD 99.00 on Friday morning, while US WTI oil is trading at USD 91.61.
The conflict between the US, Iran, and the Houthis has driven price movements over the past week. The US has been bombing Iran for 13 consecutive days, and the Houthis have fired upon several ships off the coast of Yemen, leaving only one viable route left for Saudi Arabia to send oil through the Suez Canal.
According to Jay Hatfield, CEO of ICM, if traffic in the Red Sea is minimal, prices could reach USD 120 per barrel. This would be a turning point for the oil price, as it would necessitate cutting back on consumption through higher prices.