World Bank Warns Of Possible Increase In Oil Prices To $150 In Case Of Escalation Of The War In Israel

Written by Paulo Nogueira

Published on 31/10/2023 at 15:10

REUTERS/Dado Ruvic/Ilustração

Seja o primeiro a reagir!

The Creditors Report Analyzes That The Impact So Far Has Been Moderate.

The war in Israel and Gaza is raising concerns about oil and commodity prices in the Middle East, according to a report from the World Bank. The report warns of the risk that oil prices could reach US$ 150 due to the conflicts in the region. Currently, the price of Brent crude oil, which is the main reference for Brazil, is around US$ 88. The report also highlights that the impact on the supply of raw materials has been limited so far, but an escalation of the war could change the situation.

The World Bank outlined three possible scenarios regarding the impacts of the war on oil supply. The worst-case scenario would be a “major disruption”, comparable to the Arab oil producers’ embargo on Israel’s allied countries in 1973. In this case, global oil supply would decrease by between 6 million and 8 million barrels per day, leading to an initial increase of 56% to 75% in barrel prices.

In addition to the impact on fuel prices, the report also highlights the impact on food prices. If there is a significant increase in oil prices, this could lead to an increase in food price inflation, which is already high in many developing countries. By the end of 2022, more than 700 million people were undernourished worldwide.

ARTICLE CONTINUES BELOW

Possible Scenarios That Could Impact The Global Oil Market

The other possible scenarios would be a “medium disruption”, comparable to the Iraq war in 2003, and a “small disruption”, comparable to the civil war in Libya in 2011. In both cases, there would be an increase in oil prices, but on a smaller scale.

In summary, the war in Israel and Gaza is generating concerns regarding oil and commodity prices in the Middle East. The World Bank warns of the risk of a double shock in commodity supply due to the conflicts in the region and in Ukraine. This could lead to an increase in oil and food prices, affecting the global economy.

0 Comentários

Mais recente

Mais antigos Mais votado

Feedbacks

Visualizar todos comentários

World Bank Warns Of Possible Increase In Oil Prices To $150 In Case Of Escalation Of The War In Israel

The Creditors Report Analyzes That The Impact So Far Has Been Moderate.

Possible Scenarios That Could Impact The Global Oil Market

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

In the Saudi Arabian desert, the world’s largest green hydrogen plant is 80% complete and will use 4 gigawatts of solar and wind energy to produce 600 tons of clean fuel per day when it opens in 2027.

Brazilian cities shining from space impress in a new image from NASA that reveals São Paulo, Rio, BH, and other urban centers during the historic Artemis II mission, which also captured the Moon like never before.

While nuclear energy projects typically take more than a decade, France has built a system over the years where about 70% of electricity comes from nuclear power plants, ensuring energy stability with low carbon emissions.

A mixture of PVA glue with water becomes a cheap sealer and helps to reinforce the wall before rain, reducing light infiltrations when applied at the right time.

Brazilian scientists use high-frequency ultrasound to burst Covid-19 and H1N1 viruses without damaging human cells and point to a path for new treatments against dengue and zika.

Scientists find a super-reservoir of 6,000 km³ of magma beneath Tuscany at depths of up to 15 km, paving the way to explore geothermal energy, lithium, and rare earth elements.

Red dots from the James Webb may reveal black holes that are relics from before the Big Bang, says a study proposing a “Great Bounce” and suggesting a connection with dark matter.

World Bank Warns Of Possible Increase In Oil Prices To $150 In Case Of Escalation Of The War In Israel

The Creditors Report Analyzes That The Impact So Far Has Been Moderate.

Possible Scenarios That Could Impact The Global Oil Market

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

In the Saudi Arabian desert, the world’s largest green hydrogen plant is 80% complete and will use 4 gigawatts of solar and wind energy to produce 600 tons of clean fuel per day when it opens in 2027.

Brazilian cities shining from space impress in a new image from NASA that reveals São Paulo, Rio, BH, and other urban centers during the historic Artemis II mission, which also captured the Moon like never before.

Petrobras made two discoveries in the pre-salt of the Campos Basin in less than 30 days: “excellent quality” oil in Marlim Sul in March and hydrocarbons at 2,984 meters in April.

The government will pay R$ 1.20 for each liter of diesel that Brazil imports and for the first time in history requires distributors to reveal how much they profit — those who hide their margins will face fines of up to R$ 500 million…

Under kilometers of water, rock, and salt, Brazil hides a colossal wealth that led an official guide from the U.S. government to recognize the country as the owner of the largest ultra-deep oil reserves in the world.

Iran said that the Strait of Hormuz is open, but in practice only 1 non-Iranian oil tanker managed to cross in 24 hours — before the blockade, 100 ships passed per day.

Petrobras completes 1,300 hours of work and 15 km of subsea lines to connect the Búzios 90 well to the P-79 — the platform is ready to produce 180,000 barrels per day and is just awaiting ANP approval.

While nuclear energy projects typically take more than a decade, France has built a system over the years where about 70% of electricity comes from nuclear power plants, ensuring energy stability with low carbon emissions.

A mixture of PVA glue with water becomes a cheap sealer and helps to reinforce the wall before rain, reducing light infiltrations when applied at the right time.

Brazilian scientists use high-frequency ultrasound to burst Covid-19 and H1N1 viruses without damaging human cells and point to a path for new treatments against dengue and zika.

Scientists find a super-reservoir of 6,000 km³ of magma beneath Tuscany at depths of up to 15 km, paving the way to explore geothermal energy, lithium, and rare earth elements.

Red dots from the James Webb may reveal black holes that are relics from before the Big Bang, says a study proposing a “Great Bounce” and suggesting a connection with dark matter.