Due to market concerns over the ongoing conflict in the Middle East and potential disruptions to crude oil supplies, New York crude oil futures prices surged on the 5th, marking the largest single-day increase in nearly six years.
At the close of trading that day, the price of light crude oil futures for April delivery on the New York Mercantile Exchange rose by $6.35 to close at $81.01 per barrel, an increase of 8.51%, the largest single-day gain since early May 2020. Brent crude oil futures for May delivery rose by $4.01 to close at $85.41 per barrel (about 336.43 ringgit), a gain of 4.93%.
According to U.S. Ritterbusch and Associates, as it is still unclear when the conflict will end, there appears to be further upside potential for international crude oil prices. If the conflict continues into next week, New York crude oil futures prices could break through $95 per barrel.
German fintech company NAGA Group market analyst Walbaum believes that the uncertainty surrounding the duration of the conflict is pushing oil prices higher, "Any substantial market pullback may depend on clear signs of easing geopolitical tensions or the sustained recovery of commercial oil tanker transport."
Hilde Ropp, chief commodity analyst at Sweden's Nordea Bank, stated that the impact of the conflict on oil prices will significantly depend on the length of its duration. If it lasts more than 7 to 12 days, oil prices may see a "more significant moment."
Bahrain Petroleum Company Refinery Hit by Iranian Missile
A facility at the main refinery of the Bahrain National Petroleum Company was hit by an Iranian missile on the 5th, causing a fire.
The fire has now been fully brought under control, with no reports of casualties, and the refinery's production and operations continue as normal. An assessment of the damage is currently underway.
Public information shows that Bahrain National Petroleum Company owns and operates only one large refinery in Bahrain, with a crude oil processing capacity of 267,000 barrels per day.