Brent oil is pushing 110 dollars: Expectation of a hike in fuel prices

Energy prices have reignited in global markets. Concern that the political and military tension in the Middle East could spread to a wider geography and hit the oil supply chain led to a sudden jump in Brent oil prices.

TESTED $110 WITHIN HOURS

The barrel price of Brent oil, which followed a horizontal course in the 105 dollar band in the morning, turned its direction sharply upwards later in the day due to the effect of increasing global supply fears. With the increase momentum reaching over 3.5 percent and reaching 4 percent, Brent oil reached $109.69 and pushed the $110 threshold. A similar reaction was seen in West Texas Intermediate (WTI) crude oil; The WTI barrel price also exceeded the 100 dollar threshold with a strong rise.

CRISIS AND CLIMATE CONDITIONS ARE FORCING PRICES

According to international analysts, multiple factors are combining behind this aggressive rise in oil prices. In addition to the tension in the Middle East putting global oil transportation and supply routes at risk, daily production disruptions caused by hurricanes and storm activities (Isaias, etc.) that hit US oil production in the Gulf of Mexico are among the main factors narrowing the market. On the other hand, rising inflation expectations in the US economy have increased sensitivity to energy costs on a global basis.

CITIZENS ARE CONCERNED ABOUT 'RISK'

This international fluctuation in Brent oil directly threatens the fuel prices in Türkiye. In a situation where exchange rates are already high, the climb in crude oil prices from 105 dollars to 110 dollars within hours signals that new increases in gasoline and diesel prices are on the way.

According to the pricing in the first half of October, gasoline is sold at an average of 85 TL per liter in metropolitan cities, and diesel is sold at 96 TL per liter. If this latest jump in Brent oil is permanent, possible updates in pump prices; It is feared that this will be reflected in all basic consumer goods, especially food, through transportation and logistics costs, further aggravating the inflation burden on citizens.