Brent Crude Crosses $100 Per Barrel as International Energy Agency Releases Oil Reserves

The increasing levels of conflict in the West Asia region are being reflected in the world oil market. On Thursday, the price of crude oil climbed again past the $100 per barrel mark. 

The price of the international benchmark crude oil, Brent crude, went up by more than 9 percent and touched the $100.76 per barrel mark. On the other hand, the price of the US benchmark crude oil, the WTI crude, went up by around 9 percent and touched the $95 per barrel mark. 

This increase in the price of crude oil comes at a time when the International Energy Agency (IEA) has decided to use oil from emergency reserves to prevent the price of crude oil from going up any higher. On Wednesday, the 32 members of the IEA decided to release 400 million barrels of crude oil from their emergency reserves.

The US Department of Energy also announced the release of 172 million barrels from its Strategic Petroleum Reserve. According to US Energy Secretary Chris Wright, oil supplies could begin next week and will take approximately 120 days to fully release.

Earlier, due to rising tensions in the Middle East, crude oil prices had reached $119 per barrel, although they later fell to around $80 per barrel.

According to experts, the current surge is primarily due to rising tensions around the Strait of Hormuz and alleged disruptions to shipping. Amid the escalating conflict between the US, Israel, and Iran, incidents of oil tankers being targeted have increased market supply concerns.

The Strait of Hormuz is a narrow but crucial sea route in West Asia, through which approximately 20 percent of the world's crude oil trade passes. Therefore, escalating tensions in this region have a direct impact on global oil markets and prices.