The price of oil has collapsed

Brent oil immediately fell by more than 15%. Now it is trading in the range of $83 per barrel. At the moment, the price of oil dropped below $82, reports Reuters.

The decline in energy prices began immediately after US President Donald Trump announced an end to the military conflict in Iran. Although on Monday the price of oil reached $119 per barrel.

At the same time, Wood Mackenzie chief analyst Simon Flowers believes that oil prices will remain high for some time. Even if the war ends soon, its supply will not be restored quickly.

“When the conflict ends, it will not be possible to quickly unwind the entire supply chain. Petroleum product stocks stored at refineries or ports can be shipped fairly quickly by ship. But if wells are shut down for a long period of time, it could take weeks or even months to restore production to full volume,” Flowers told Reuters.

In turn, the consulting company Rapidan Energy published the results of the analysis. It says the US-Israeli war against Iran has resulted in the largest oil supply disruption in history.

Analysts estimate that since the conflict began, about 20% of the world's oil supply remains unavailable to the market. The main reason for the disruption was the closure of the Strait of Hormuz, through which a significant part of the world's oil supplies passes.

The day before, Trump called Vladimir Putin. Their conversation lasted about an hour, after which the head of the White House said that the United States could lift sanctions on some countries whose oil was under an economic ban.