The key facts
- Brent fell more than 3% — to $106.24 per barrel by 17:30 Moscow time
- By 18:45 the price recovered to about $108.2, but remained more than 1% below the previous close
- Alexander Novak suggested further price increases due to shipping restrictions through the Strait of Hormuz
Sharp Drop and Partial Recovery
On Tuesday, October 20, world oil prices reversed after morning growth. According to the trading platform Investing, the price of North Sea Brent fell more than 3% during trading, dropping to $106.24 per barrel. The quotes reached this level by 17:30 Moscow time. However, by 18:45 oil had recovered part of its losses and rose to about $108.2 per barrel. Despite the recovery, the price of the commodity remained more than 1% below the closing level of the previous trading session.
Novak on the Situation with the Strait of Hormuz
Earlier, Life.ru reported that Russian Deputy Prime Minister Alexander Novak suggested further increases in oil prices due to shipping restrictions through the Strait of Hormuz. According to him, disruptions in tanker traffic have become a serious shock for the global energy sector. The possibilities of using strategic oil reserves to stabilize the market, in his assessment, are practically exhausted. Novak also warned that even after the restoration of supplies through Hormuz, it could take up to a year and a half for the world market to return to equilibrium.
