Oil prices surpass $100, energy shock intensifies
Diesel and jet fuel costs are rising faster than crude oil.
1Sudden surge in oil prices
Oil prices have surged more than 30% in the past month, surpassing $100 per barrel. US-Iran conflicts in the Middle East threaten global energy supplies. Attacks in the Red Sea are also increasing disruptions through the Strait of Hormuz.
2Costs rising faster than crude oil
According to analysts, shipping and refining costs are rising faster than crude oil prices. This could push up diesel, jet fuel, and gas prices. The energy shock is growing as the conflict drags on.
3Squeeze in diesel fuel
Mizuho estimates that diesel fuel is effectively priced at over $180 per barrel, nearly double the price at the start of the year. Russia's potential extension of its diesel export ban is also tightening the market.
4Decline in natural gas stocks
Europe would normally build up gas reserves ahead of winter, but stocks are unusually low this year. The US has also drawn down its strategic oil reserves, adding pressure to energy markets.
5Shipping and insurance costs
The turmoil is driving up shipping and insurance costs. Mizuho estimates that shipping costs could rise from $10-12 to $15-20 per barrel. This makes transporting oil and fuel more expensive.
6Impact of the energy shock
The energy shock is having a much larger impact than crude oil prices alone. Fuel markets are tightening, and this could deeply affect the global economy. Analysts note that supply risks are greater than at any point during the war.
Original article: Business Insider — Petrol fiyatları 100 doları aştı, enerji şoku büyüyor