Oil prices have plummeted amidst the potential end of the Middle Eastern conflict.
Oil prices sharply declined following the US President’s announcement about a possible end to the war with Iran, while the restoration of the supply chain promises not to be soon.
On the London ICE Futures Exchange, the price of May Brent futures decreased by $16.11 (16.28%), falling to $82.85 per barrel. Simultaneously, WTI futures on the New York Mercantile Exchange (NYMEX) dropped by $16.14 (17.03%) to $78.63 per barrel. The day before, both benchmarks almost reached $120 per barrel, due to fears of reduced production by Middle Eastern countries following the closure of the Strait of Hormuz.
It is worth noting that Saudi Arabia has already reduced production volumes by 2-2.5 million barrels per day, the UAE by 500-800 thousand bpd, Kuwait by approximately 500 thousand bpd, and Iraq by 2.9 million bpd.
These statements were made in the context of comments by US President Donald Trump that the war with Iran might end soon. In this regard, experts warn that the restoration of supply chains will be a lengthy process, and if wells are shut down for a long time, it could take weeks or even more to resume production.
Before this, Trump announced intentions to lift some sanctions against oil-producing countries to curb the increase in energy prices caused by the US and Israel’s conflict with Iran.
| Date | Brent ($/barrel) | WTI ($/barrel) |
| March 10 | 82.85 | 78.63 |
