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The Consequences of War
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The price of Brent oil is still above $100

Before the war, the reference price for oil was EUR 72. The closure of the Strait of Hormuz has contributed decisively to the rise in prices.

(Foto de ARCHIVO)

FILED - 16 August 2019, Lower Saxony, Emlichheim: Oil pumps operate at Wintershall Dea oil well. Photo: Mohssen Assanimoghaddam/dpa



16/8/2019 ONLY FOR USE IN SPAIN
Oil pumps in Germany. Photo: Europa Press

The price of Brent oil remains above the barrier of EUR 100. The benchmark price for European crude rose by almost 4% at 8.10 a.m. and was priced above USD 104 before the opening of European stock exchanges. The difference from the price prior to the US-Israel attack on Iran is remarkable: in thedays leading up to the start of the conflict, the benchmark price of oil was EUR 72.

On the other hand, the West Texas Intermediate (WTI) oil barrel, which is a reference in the United States, has risen by almost 5%, to $96.95 per barrel.

This Tuesday, the Brent price stood at the threshold of $105 , after closing on Monday above $100.

The International Energy Agency (IEA) decided last week to release 400 million barrels of strategic reserves — the largest in its history — to help reduce oil price tensions.

As part of this decision, the United States will release 172 million barrels of oil, the first 86 million barrels of oil that the United States will release from its strategic reserve by the end of this week.

Oil prices are changing sharply (a week ago Brent reached $119). The forecast for a longer war than expected and the problems in the Strait of Hormuz are having a significant impact.

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