By Admin 
Crude Oil Prices: The impact of the increasing conflict in West Asia and the tense situation around Iran is now clearly visible on the global energy market. Crude oil prices have increased rapidly in the international market and have crossed $115 per barrel. Due to which an atmosphere of anxiety seems to be creating.
Usually, when crude oil prices increase rapidly like this, it affects the economies of the entire world. Due to oil being expensive, it affects many other aspects. The fear of everyday items becoming expensive begins to haunt. The danger of inflation is also looming due to rising prices of crude oil. Let us know about this…
Strong rise in prices
The latest data clearly shows that the prices of crude oil are skyrocketing. The prices of American West Texas Intermediate (WTI) crude oil have increased by about 28 percent and have reached around $ 116 per barrel.
At the same time, an increase of 26 percent has been recorded in Brent crude. Its price has reached around $117 per barrel. Market experts say that, if the Strait of Hormuz does not open soon, this crisis can take a huge form. Due to which there can be a possibility of huge increase in oil prices.
Production was also affected
The effect of increasing tension in the Middle East is now visible on oil production as well. Due to security reasons, Kuwait has reduced its oil production and refinery activities. At the same time, there has been a decline of about 70 percent in Iraq’s production.
Production in Iraq’s southern oil fields has fallen from 4.3 million barrels per day before the war to about 1.3 million barrels per day. Along with this, the United Arab Emirates (UAE) has also decided to run its offshore production with caution in view of the pressure.
Impact may be visible on these sectors
The rise in crude oil prices can have an impact on many sectors. Especially on those sectors whose costs are directly related to energy or crude. This mainly includes oil marketing companies, paint industry, aviation sector, lubricant companies, tire industry and cement sector.
When oil becomes expensive, the production and operating costs of companies in these sectors increase. Due to which there may be pressure on the profits and margins of companies.
Also read: Gold Silver Price Today: Gold and silver prices slipped in the shadow of war, silver fell by Rs 3500; Know today’s latest prices