Oil price soars on fear of shortage
The prices of Brent, the benchmark oil in Europe, and US WTI soared more than 5% on Monday, as a result of the impasse in the peace talks in Ukraine and the increase in tensions in the Middle East.
North Sea Brent rose 6,11% to $114,52 a barrel, and US WTI rose 5,52% to $110,48.
European Union foreign ministers meet in Brussels on Monday to discuss new sanctions against Russia, with some members of the bloc pushing for an embargo on Russian oil and gas.
Saudi Arabia, the world's top crude exporter, warned on Monday that attacks by Yemeni rebels on its oil facilities pose a "direct threat" to global supply.
"As war rages in Ukraine, another protracted conflict (in Yemen) is adding to the jitters around the price of oil after Houthi rebels attacked a refinery in Saudi Arabia," said Susannah Streeter, an investment and markets analyst at Hargreaves Lansdown.
Petroleum is a very dark or black mineral oil, less dense than water and with a characteristic acrid odour. It is formed by a mixture of hydrocarbons accompanied by sulfur, oxygen and nitrogen in varying amounts. Oil is found only in sedimentary rocks.
Petroleum originates from a raw material formed mainly by the remains of living aquatic organisms, plants and animals that lived in the seas, lagoons, river mouths and near the sea. These remains were attacked in the muddy bottoms by anaerobic bacteria that consumed their oxygen, leaving only carbon and hydrogen molecules called hydrocarbons.
The pressure exerted by the enormous mass of sediment causes the expulsion of the liquid that is between the layers of the sedimentary rock. This liquid, the oil, migrates down the slope for tens of kilometers until it finds a porous and incomprehensible rock whose holes it fills. This rock is called store rock.
Source: Las Americas Newspaper
Author: Andrea Rausseo 8:09 pm