Brent crude oil price exceeds 108 dollars, reaching a four-month peak
As oil prices increase in global markets, fuel prices break records while US bond yields and inflation concerns escalate.
While the surge in oil prices causes anxiety in global markets, the barrel price of Brent crude oil saw levels of 108 dollars, reaching its highest level in the last four months and increasing fuel costs.
Global Oil Markets
Diminishing expectations of negotiations between the US and Iran triggered concerns over global oil supply. The barrel price of Brent crude exceeded 107 dollars to reach a four-month peak and began trading at 108.06 dollars in international futures markets.
Economic Indicators
Along with oil, the ounce price of gold fell to 4,280 dollars. While geopolitical tensions in the Middle East and supply concerns stemming from the Strait of Hormuz drove energy prices upward, expectations that the US Federal Reserve (Fed) will tighten monetary policy strengthened.
International Fuel Prices
The US 10-year Treasury yield rose to 5.04 percent, seeing its highest level since July 2007. The average price of a gallon of gasoline in the US rose to 4.32 dollars, while the average price of a gallon of diesel reached a record level of 6.23 dollars. In Germany, meanwhile, the liter price of Super E10 type gasoline rose to an average of 2.273 euros, hitting an all-time high.
Developments in Turkey
In Turkey, the liter price of diesel exceeded 95 TL in Istanbul and 97 TL in Izmir. The possibility of the price exceeding 100 TL brought up the necessity to revise or replace two-thirds of approximately 80,000 pumps across 14,000 fuel stations; it was calculated that the total cost could reach 212.5 million dollars.