Alexey Gromov, Principal Director on Energy studies at the Institute for Energy and Finance, commented on the situation on the global oil market after the start of the US and Israeli military operation against Iran to Silver Rain Radio.
As such, there was no sharp rise in oil prices against the background of the conflict, Alexey Gromov states:
"The active phase of the conflict in the Middle East began in the context of a surplus of oil on the world market. According to various estimates, as of February it was already 2.5-3 million barrels per day, that is, this is an excess of supply over demand of about 2.5% - 3% of global oil demand. This is a significant amount. In the current political conditions, even before the conflict began, oil prices were rising, meaning we had a surplus of oil, which should have pushed prices down, but let me remind you that the price level at the end of December was $63 per barrel, and prices jumped to $71 by the beginning of the conflict. This means only one thing - the market has potentially already included a military premium in the price tags at which oil has been sold on the world market in recent weeks, so we do not see a sharp rise in prices on Monday after the weekend, during which the escalation of the military conflict began."
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