Oil Jumps Biggest Weekly Rise Since 2022!
Oil prices are headed for their biggest weekly gain since 2022 as wars in the Middle East trigger widespread disruptions in energy markets, making it difficult for producers, importers, and shippers to adjust supply flows. Heightened risks to key distribution channels are driving geopolitical premiums, although intraday movements remain volatile.
West Texas Intermediate (WTI) has rallied about 18% this week, but on Friday briefly fell back below $77 per barrel after US President Donald Trump signaled "immediate action" to ease price pressures. Brent is hovering around $83-$86 per barrel after hitting its highest level since mid-2024 on Thursday.
On the conflict front, Iran has stated that it has not requested a ceasefire and has no intention of negotiating, while Israel continues its airstrikes on Tehran. Political tensions have also escalated after Trump told the media that he wants to be involved in the process of selecting a successor to Iran's supreme leader, who was reportedly assassinated.
Supply disruptions have become increasingly apparent as shipping through the Strait of Hormuz has "virtually come to a standstill," restricting supplies to global markets and prompting some producers to begin shutting down production. Several refineries and tankers have reportedly been impacted, while importers are struggling to secure cargoes amidst strained logistics.
On the policy front, the US has granted short-term relief to allow India to purchase Russian oil, but authorities have emphasized that this only covers transactions for oil already stranded at sea. The US government is also considering various options to respond to the surge in oil and gasoline prices, including the possibility of releasing emergency stocks, although it has not yet moved to tap the Strategic Petroleum Reserve.
Pressure is also emerging from Asia. China is reportedly asking major refineries to halt diesel and gasoline exports to prioritize domestic demand, while Japanese refiners are asking the government to release oil from the strategic reserve. Market participants will be monitoring three key variables going forward: the duration of the disruption in the Strait of Hormuz, the response of strategic inventory policies in consumer countries, and changes in real demand in Asia amid energy conservation efforts. (asd)
Source: Newsmaker.id
