The OPEC crude oil prices are fluctuating below $70 a barrel on Monday. It shows a wide margin in price vis-à-vis Brent Crude and Murban Crude. On Monday, the price of Brent crude surged to $107 per barrel while Murban crude hit $120 a barrel.
Oil prices further surged sharply on Monday as escalating conflict in the Middle East raised fears of prolonged supply disruptions, while global stock markets tumbled amid growing economic uncertainty.
Since the conflict began on February 28, WTI prices have risen more than 75 percent, and Brent has gained over 60 percent, reflecting escalating concerns about energy supplies.
Markets react as conflict disrupts energy flows
Oil prices spiked as Iran launched retaliatory strikes on energy facilities in Gulf states following US-Israeli military operations. Reports indicated attacks on oilfields in southern Iraq and the autonomous Kurdistan region, forcing a US-operated oilfield to halt production.
Consequently, investors rushed toward safer assets. The US dollar strengthened while equity markets across Asia plunged sharply.
Seoul’s Kospi index fell nearly eight percent at one stage, while Tokyo’s Nikkei dropped seven percent and Taipei declined more than five percent. Similarly, markets in Hong Kong, Shanghai, Sydney, Singapore, Manila and Wellington also recorded steep losses.
Inflation worries deepen as investors flee risk assets
Rising energy prices have intensified fears of renewed inflation that could slow global economic growth. Higher oil costs may also limit central banks’ ability to cut interest rates to support economies.
The US President Trump downplayed the oil price surge. He said the higher oil prices represent a “very small price to pay” for eliminating Iran’s nuclear threat.
