Oil price exceeds US$ 100 with war

by Marcelo Moreira

The price of a barrel of Brent oil, an international reference, soared more than 17% and reached almost US$120 per barrel on Sunday (8), its highest price since July 2022, amid fears of shortages following the escalation of war in the Middle East.

At 7:30 am this Monday (3:30 am Brasília time), the price of Brent was quoted at US$ 109.62, after rising 17.53%, according to data from Bloomberg compiled by EFE Agency.

Last Friday, Brent for delivery in May had already closed with a strong increase of more than 8%, close to US$93.

The price of crude oil has increased by more than 40% since the start, on Saturday, February 28, of the war between the USA, Israel and Iran.

The conflict affects the Strait of Hormuz, which is one of the main maritime passages for trade and through which around 20% of the world’s oil flows.

In turn, the price of Texas Intermediate Oil (WTI) also shot up 15.14%, reaching US$104.86, before the official opening of the US market.

Instability in the Middle East puts pressure on the Brazilian energy sector

One of the main impacts that the war in the Middle East could bring to Brazil is the pressure on prices and supply of diesel oil, as almost 25% of the resource comes from outside the country.

The spike in oil prices increased the gap in diesel sold by Petrobras in its refineries to 47% in relation to the international market last Friday.

International instability also puts pressure on Petrobras due to domestic oil prices. A report from the Brazilian Association of Fuel Importers (Abicom) last Friday pointed out that, to match international oil prices, the state-owned company should readjust the price of diesel by 64% and gasoline by 27%.

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