According to SaudiNews50 report, US Energy Secretary Chris Wright has made it clear that crude oil prices are unlikely to reach $ 200 per barrel. America has described the rise in oil prices amid the ongoing tension in the Gulf region as a small and temporary change. The International Energy Agency (IEA) has taken a major decision to provide relief to markets around the world. IEA has announced to release 400 million barrels of oil from its reserves into the market, which is the biggest step so far.
America and Iran have different claims on oil prices
American officials believe that the oil market will soon return to normal. House Speaker Mike Johnson has also described the increase in gas prices as a short-term problem and said that the situation will improve soon. On the other hand, Iranian official Ibrahim Zulfikari has warned on the contrary. He says that in view of the deteriorating security situation in the region, the market should be prepared for $ 200 per barrel. Currently, Brent crude is trading in the market at around $100.83 and WTI at $95.02 per barrel.
Tension in the Gulf and Saudi’s new step
Several incidents have occurred in the Gulf region in the last 24 hours. Two crude tankers have caught fire at a port in Iraq. It is suspected that this was an attack by a drone or a boat filled with explosives. Along with this, the movement of ships through the Strait of Hormuz has also been heavily affected and Iran has warned that it will not allow oil ships to pass through there.
Saudi Arabia has taken an important step to deal with this crisis. Saudi Arabia has increased the supply of crude oil through its East-West Pipeline, abandoning the Gulf route. This pipeline starts from the Eastern Province and goes to the Red Sea. However, experts believe that this pipeline cannot fully compensate for the total loss caused by the Gulf route.
