Global Oil Prices Surge Past $100 a Barrel Amid Supply Concerns

Key Figures:

• $101.59: Brent Crude price surge on Thursday, March 12
• $96: West Texas Intermediate price jump
• ₹8,745: MCX crude oil price surge on Thursday
• 400 million barrels: IEA's decision to release crude stocks
• 172 million barrels: US release as part of the global effort to ease prices

Oil Prices Escalate Amid Middle East Tensions

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Global oil prices surged past the $100 a barrel mark on Thursday, March 12, as supply concerns worsened with Iranian attacks on commercial shipping around the Strait of Hormuz. The global benchmark Brent Crude climbed as much as 10.5% to $101.59 a barrel, while West Texas Intermediate jumped to nearly $96.

Supply Concerns Worsen

The fresh flare-up in crude prices followed Oman's evacuation of all vessels from its key oil export terminal. Two tankers were attacked in Iraqi waters, highlighting escalating risks to energy infrastructure across the Middle East. Oman's facility is located outside the Strait of Hormuz and is among the limited ports through which Middle Eastern crude can reach global markets.

Global Effort to Ease Prices

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The International Energy Agency (IEA) has coordinated a release of 400 million barrels of oil, a historic drawdown exceeding the volumes released after Russia invaded Ukraine in 2022. The United States plans to release 172 million barrels as part of the global effort to ease prices.

Market Outlook

According to Choice Institutional Equities, the market may enter the scarcity-premium phase if the Strait of Hormuz remains closed without negotiations between the US-Israel and Iran in place. In such a scenario, price moves tend to accelerate sharply, which could push Brent towards $130/b by the end of next week.