Oil prices jumped sharply Friday to their highest levels in weeks, as investors assessed the impact of both the Iran and Ukraine-Russia wars on global energy supplies. Brent crude oil spiked above $109 per barrel, its highest level since mid-September. The oil price benchmark — widely considered to be among the most important figures in global energy — was just a few cents away from its highest level in five months.
U.S. crude oil, which also steers gas prices, rose to $100 per barrel. It was the first time West Texas Intermediate crude had crossed that threshold, closely watched by both traders and the public, since September. Friday’s price jumps will likely add to already elevated gasoline prices for U.S. consumers in coming days.
As of Friday morning, regular gasoline averaged $4.32 per gallon nationwide. At midafternoon trading levels, oil prices were poised to gain about 5% over the course of the week. Diesel futures also jumped by more than 1% Friday.
The cost of this commercial fuel critical for farming and other industrial sectors has risen even faster than regular gasoline in recent months. Stocks fell Friday, partly in response to the jump in energy prices. The S&P 500 fell more than 1% while the Nasdaq Composite sharply dropped 2% by midafternoon.
The price of fuel around the world began its steady rise this spring, when the U.S. and Israel attacked Iran in late February, prompting the closure of the Strait of Hormuz. But an escalation in the Russia-Ukraine war in recent months has caused an even more dramatic price spike for diesel. Russia has traditionally been one of the world’s largest diesel exporters.
But attack by Ukrainian forces on its energy infrastructure has taken much of its refining capacity offline. Likewise, energy assets in Ukraine have been targeted by Russian strikes. As a result of the strikes, buyers of Russian diesel have been forced to look elsewhere for their fuel supplies.
Extract — continue reading at the source.
