Oil jumps to $110 per barrel for the first time in 5 months.. What are the experts’ interpretation?

- Global oil futures prices rose to $110 per barrel, Friday, for the first time since May. This rise threatens to push gasoline and diesel prices to higher levels ahead of the midterm elections for the US Congress. Traders in energy markets attributed this rise to renewed concerns about oil and fuel supplies, in light of the continuing war between the United States and Iran.

Robert Yawger, director of energy futures at Mizuho Securities, said: “The Iranians are attacking ships in the Strait of Hormuz at the fastest and most intense rate since the outbreak of the war, and there are fears that President (US Donald) Trump will return to the option of all-out war after the midterm elections.” Brent crude, the global index, rose 3.7% to close at $109.57 a barrel, the highest closing level since May 19. During trading, the price of Brent crude reached $110 at one point.

With this rise, Brent crude oil has risen by 38% compared to its recent lowest level, which was just under $80 per barrel in early August. Gasoline prices remain at historically high levels for this time of year; The national average price of regular gasoline reached $4.33 per gallon, up from $2.98 before the war began.

Despite Trump's repeated assurances that prices will soon fall, oil has rarely been as expensive in recent years as it is today. During the past three years, Brent crude has only recorded a price higher than Friday’s closing level in only 7 days, and West Texas Intermediate crude rose by 3.5% to reach $101.41 per barrel.

Tom Kloza, global energy advisor at Gulf Oil, noted that energy markets were also affected by rumors about more energy infrastructure in the Middle East being attacked, in addition to the introduction of bipartisan legislation in the United States aimed at blocking a deal concluded by Trump to buy diesel from Russia.