What is the story about?
The price of Brent Crude, one of the key measures of global crude oil, has increased to $98 per barrel. With this, the benchmark has soared over 4% in today's trade.
Brent has surged to a six-week high. Meanwhile, West Texas Intermediate was close to $89.50 a barrel.
This has added to the pressure on the equity markets, especially on Dalal Street, with the Nifty 50 index falling over 180 points intraday, slumping towards the 23,800 mark.
This development comes as tensions in West Asia continue to aggravate. In addition to the conflict between the US and Iran, the conflict has also spread to the other side of the Persian Gulf.
Most recently, the Houthis in Yemen reportedly attacked Saudi Arabia-based oil tankers in the Red Sea, further jeopardising the oil market. This attack came a day after the militant group announced a blockade on the Bab-Al-Mandab Strait.
At the bourse in India, the OMC stocks, including Indian Oil Corporation (down 2%), HPCL (down 2.50%), and BPCL (down nearly 1%) are under pressure.
In addition to that, QatarEnergy, as per a Bloomberg report, said that it is preparing to further extend force majeure on liquefied natural gas shipments through mid-October. This move could prolong the supply shock that has disrupted the global gas market amid the war in the Middle East.
Certain customers in Asia and Europe were informed by Qatar in June that they would be cancelled through August and September. If the force majeure is prolonged once more, the global market would become even more competitive as Europe and Asia vie for a little supply of LNG, with purchasers refilling inventories for the impending winter and heat boosting demand in certain nations.
Also Read: Oil prices jump after Houthis attack two Saudi Arabian tankers in the Red Sea
Brent has surged to a six-week high. Meanwhile, West Texas Intermediate was close to $89.50 a barrel.
This has added to the pressure on the equity markets, especially on Dalal Street, with the Nifty 50 index falling over 180 points intraday, slumping towards the 23,800 mark.
This development comes as tensions in West Asia continue to aggravate. In addition to the conflict between the US and Iran, the conflict has also spread to the other side of the Persian Gulf.
Most recently, the Houthis in Yemen reportedly attacked Saudi Arabia-based oil tankers in the Red Sea, further jeopardising the oil market. This attack came a day after the militant group announced a blockade on the Bab-Al-Mandab Strait.
At the bourse in India, the OMC stocks, including Indian Oil Corporation (down 2%), HPCL (down 2.50%), and BPCL (down nearly 1%) are under pressure.
In addition to that, QatarEnergy, as per a Bloomberg report, said that it is preparing to further extend force majeure on liquefied natural gas shipments through mid-October. This move could prolong the supply shock that has disrupted the global gas market amid the war in the Middle East.
Certain customers in Asia and Europe were informed by Qatar in June that they would be cancelled through August and September. If the force majeure is prolonged once more, the global market would become even more competitive as Europe and Asia vie for a little supply of LNG, with purchasers refilling inventories for the impending winter and heat boosting demand in certain nations.
Also Read: Oil prices jump after Houthis attack two Saudi Arabian tankers in the Red Sea
