International oil prices are recording an “explosive” rise, with Brent crude surpassing $105 per barrel and US crude (WTI) breaking through the psychological $100 threshold.
The escalation of hostilities in the Middle East, combined with the dramatic decline in Saudi Arabia’s oil production, is reigniting fears of a prolonged energy crisis and a new wave of inflation.
Brent crude is up 4.4%, reaching $105.61 per barrel, while US crude (WTI) has risen 4.7% to $100.63 per barrel.
At the same time, Saudi Arabia informed OPEC that its crude oil production had plunged in August, falling to its lowest level since 1990, during the Gulf War.
Monthly production fell by 1.9 million barrels per day, reaching 6.238 million barrels per day. Tanker-tracking data indicate that exports fell by one-third, to approximately 3 million barrels per day.
As for supply to the market, it stood at 7.122 million barrels per day, higher than production, suggesting that Riyadh drew on its oil inventories to meet part of the demand.
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