Oil rose to 118 dollars today, seeing the peak of 9 years, due to Russia’s invasion of Ukraine and Western countries’ concerns about sanctions against Moscow. The price of a barrel of Brent oil was $73 at the beginning of the year. Since the beginning of Russia’s invasion attempt, oil prices have increased by 24 percent. The increase in fuel, which was increased last night, is also expected after midnight tonight. According to sources close to the sector, there will be a 53 hike in gasoline and 1.33 in diesel.
Russia’s invasion of Ukraine and the sanctions imposed by Western countries against Russia further increased energy prices. As of this morning, the price of Brent oil per barrel increased by 2.9 percent daily to reach $118. Thus, oil prices saw the peak of the last 9 years.
This was the highest price per barrel of brent oil since February 2013. Global oil production did not decline due to the war. However, experts stated that companies do not prefer to buy Russian oil even though there is no sanction in this area, and this means a decrease in supply.
There was no interruption in gas flow from Russia, but unlike gas transported by pipelines, a significant part of Russian oil was exported to Europe by ship from ports in the Black Sea. However, with the war, there are security problems on the sea route while the airway is closed.
European companies also stopped purchases, as insurance companies did not insure oil shipments from Russia.
DECISIONS MADE DID NOT WORK
The OPEC+ group, which consists of the Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, decided to continue the gradual production increase plan of 400 thousand barrels per day in April, as well.
Members of the International Energy Agency, especially the USA, announced yesterday that they would release 60 million barrels of oil from their strategic reserves, but they did not put out the fire with the decision taken.
INCREASED 24 PERCENT
These steps to increase oil supply did not have a downward effect on prices. Before Russia’s invasion attempt, the price of brent oil per barrel was around 95 dollars. With the war, oil prices increased by 24 percent.
HIGH ON FUEL
This increase in oil prices also negatively affects fuel prices. Last night in Turkey, 88 kuruş for gasoline and 1.51 TL for diesel oil. However, according to the information received from sources close to the fuel sector, a large increase is expected.
After midnight tonight, there will be an increase of 53 cents for gasoline and 1.33 for diesel.
After the hike, the liter price will rise from approximately 17.43 TL in gasoline to 17.96 TL, and from 17.58 TL in diesel fuel to 18.91 TL.