After the beginning of the Iran War, since February 28, the crude oil prices have experienced intense volatility. The Iran war has wiped out over $50 billion worth ofcrude oil productionfrom global markets, with over 500 million barrels of crude and condensate knocked offline since the conflict began in late February, according to analysts and Reuters calculations.
In the first 15 days of the war itself, the crude oil prices surged over 40%. The US-Iran conflict has raised the crude oil prices from around $73 to over $ 103 per barrel, with peaks reaching nearly $120. The disruption of global oil supplies through Strait of Hormuz has kept prices above $90 on average.
According to Kpler data, since the crisis began,more than 500 million barrelsof crude and condensate have been removed from the global market.
It further said the global onshore crude inventories have already fallen by about 45 million barrels so far in April. Since late March, production outages have averaged roughly 12 million barrels per day.
There has been a huge gap in the how the prices of crude oil unfolded in 1980s to 2026.
The crude oil prices remained calm from mid-1980s till the start of the millennium. As per the World Economic Forum data, the prices hovered around an average of $20.
By 2005, the global oil spare capacity was at historically low levels, and it was close to $60.
In 2008, the crude oil prices faced the first shock coming on the back of global economic crisis - the great recession. During the period, crude oil prices climb steadily until reaching a peak of over $140 per barrel.
During that period, there was an increasing demand of oil from emerging economies like China and India while US dollar was dropping in value. These factors clubbed by the geopolitical tensions in the Middle East led to sharp increase in the crude oil prices.
Later on, the Organization of the Petroleum Exporting Countries (OPEC) had to come in to stabilise the falling oil demand by cutting a record 4.2 million barrels a day, with the price dropping from $141 in mid-2008 to $37 in January 2009.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
