WTI crude oil price has exceeded $110 per barrel, Brent is near that mark

The cost of May futures for Mark WTI oil jumped by more than 10%, breaking the $110 per barrel mark. June contracts for the benchmark Mark Brent also rose sharply and are trading above $109 per barrel. Prices were again boosted by an overnight speech by US President Donald Trump, who said he expects the conflict in the Middle East to continue for another two to three weeks and announced "extremely strong strikes" against Iran.

"When this conflict is over, the [Strait of Hormuz] will open on its own," Trump said. - Supplies will resume, gas prices will go down quickly. Stock prices will go up quickly."

Oil futures had been falling in anticipation of the address as investors expected it to be about a plan to end the operation, Barron's wrote. Now they are preparing for a prolonged conflict and more serious disruptions to global energy supplies.

Following the jump in oil prices, shares of energy companies rose in price. Quotes APA Corporation rose on the premarket by 3.8%, securities ConocoPhillips and Exxon Mobil added about 2.7%, Chevron - 2.4%.

UBS predicts that "if there are no signs of improvement this month," oil prices could exceed $150 a barrel. "We continue to see near-term upside risks to oil and gas prices as long as there is no clarity on a meaningful recovery in supply across the Strait of Hormuz," said Henri Patricot, an analyst at the bank, in a note quoted by Barron's.

This article was AI-translated and verified by a human editor