Oil prices soared in the early session today, March 2, extending gains from last week, as focus shifted to supply prospects amid the ongoing conflict in the Middle East, despite OPEC+ announcing an increase in production in April.
Brent crude was trading up 7.62% at $78.42 a barrel, at 09:07 am Makkah time, receding from $82.37 earlier in the day. West Texas Intermediate (WTI) jumped 7.21% to $71.85 a barrel, after rising to $75.33 earlier.
Japan’s ITOCHU Corp. said today that its oil and petroleum products shipments from the Middle East were affected due to the US-Israel attacks on Iran. It added that the company would deal with the crisis by obtaining supplies from areas outside the region.
The oil gains came despite the announcement by eight OPEC+ countries, led by Saudi Arabia and Russia, that they would raise production by 206,000 barrels per day starting in April 2026, citing what they described as healthy market fundamentals and declining oil inventories.
According to media reports, Iran’s Revolutionary Guard broadcast messages to ships passing through the Arabian Gulf claiming the closure of the Strait of Hormuz. The UK Maritime Trade Operations Centre (UKMTO) said that ships sailing in the region received these messages.
The UKMTO reported that two oil tankers were targeted and an “unknown projectile” exploded very close to a third vessel, but stated there was no official announcement regarding the closure of the Strait of Hormuz through official legal channels, and that radio communications do not constitute a legally recognized closure.
Global shipping companies, including Denmark’s Maersk, Germany’s Hapag-Lloyd and Japan’s Mitsui suspended sailing through the strait until further notice.
The Russian Foreign Ministry said on Sunday that closing the Strait of Hormuz to maritime traffic could lead to a major disruption in global oil and gas markets.
https://www.argaam.com/en/article/articledetail/id/1884254
