Oil Prices Surge Past $100 a Barrel Amid Global Market Turmoil
Oil prices surged past $100 a barrel for the first time since 2022, causing stock markets to react rapidly. US benchmark West Texas Intermediate crude jumped approximately 18% to above $107 a barrel, while Brent crude rose about 17% to above $108 a barrel. This marks a 35% weekly gain, the largest in futures trading history dating back to 1983.
The price increase has significant implications for households worldwide. Petrol prices have already climbed, with US retail gas prices reaching an average of $3.45 a gallon, up 47 cents from last week. In the UK, petrol currently averages around 136p per litre, with diesel at approximately 146p.
Heating costs are also rising sharply, with energy comparison service BoilerJuice reporting that heating oil prices have surged about 117% in recent days. The End Fuel Poverty Coalition found that 1,000 litres now costs nearly £985, compared to £670 in January, a 47% jump in two months.
Analysts at Kpler warn that oil could reach $150 a barrel by the end of March if the Strait of Hormuz remains closed. Energy expert Daniel Yergin described the situation as potentially 'the biggest disruption in oil production in history.'