By Admin 
- Crude oil shortage increased due to withdrawal of US sanctions on Iran.
Crude Oil Price Hike: After a brief decline in the prices of crude oil, it is now on the rise again. There has been turmoil in global markets after US President Donald Trump announced the cancellation of the peace agreement between America and Iran. Due to this, a rise in the prices of crude oil is again being seen in the global oil market. On Thursday, crude oil prices increased by another 1%, whereas in the previous trading session it had increased by up to 5%.
What is the price of crude oil today?
With the latest increase, today Brent crude is trading around $ 78.80 per barrel. At the same time, American Crude (WTI Crude) has also increased by 1.01% and reached the level of $ 74.26 per barrel, which is gradually moving towards the psychological level of $ 80. Yesterday, the July futures contract on India’s Multi Commodity Exchange closed at Rs 7155 per barrel with a record rise of about 6.71%.
Why are prices increasing suddenly?
The renewed military attack between America and Iran has increased the risk of disruption of oil supply through the Strait of Hormuz. This sea route is very important for energy shipment. About 20% of the world’s crude oil reaches every corner through this narrow route.
Another reason for the sudden increase in oil prices is the withdrawal of concessions given by the US Treasury Department to Iran to sell crude oil legally. Due to this, the risk of shortage of crude oil in the global market has also increased.
Movement of ships stopped on Hormuz
According to Bloomberg report, due to the deteriorating situation between America and Iran, the movement of oil tankers and LNG ships on Hormuz has been stopped. Sensing the danger, many ships are now turning towards the ‘Cape of Good Hope’. Hormuz is an important sea route related to energy shipment, on which many countries like Saudi Arabia, Kuwait, Iran, Iraq depend. In such a situation, due to its stoppage, there may suddenly be a huge shortage of crude oil in the world.
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