Professor Eloranta: $100 per barrel could become the new normal — YLE News
In Finland, Jari Eloranta, professor of economic and social history at the University of Helsinki, said that an oil price of $100 per barrel could become the new normal. The war between the United States and Iran has caused crude oil prices to rise: on Thursday, the price of a barrel fluctuated slightly above $100, YLE News reports.
Brent price rose from $70
Before the war began at the end of February, Brent crude cost about $70 per barrel, or approximately €60. According to Reuters, investment bank Goldman Sachs warned that the oil price could rise to $120 per barrel, or approximately €105, if the situation does not stabilize soon and maritime routes in the Middle East do not resume normal operations.
Eloranta considers such a scenario possible. According to him, several months ago he would not have called a price increase to that level realistic, but the duration of the conflict has changed the situation in the oil market.
More current news is available on the UA.News Telegram channel Telegram.
Impact of oil reserves
The professor noted that states and private market participants used significant volumes of oil reserves to calm the market. In his assessment, these stocks have already been depleted.
Eloranta also said that new supply disruptions, including the recent strike on an oil pipeline in Saudi Arabia, could therefore have a much stronger impact on the oil price than before. In his view, a price of $120 per barrel or higher would already mean a serious crisis for the global economy.
