Asian oil prices rise sharply

As of 5:53 a.m. on June 16 (Vietnam time), the price of North Sea Brent crude oil increased by 1.70 USD (equivalent to 2.3%) to 75.93 USD/barrel. Meanwhile, the price of US light sweet crude oil (WTI) increased by 1.62 USD (2.2%) to 74.60 USD/barrel. Earlier in the session, both types of oil had increased by more than 4 USD/barrel.

The latest spat between Israel and Iran has raised concerns about a regional war, with the strategic Strait of Hormuz at the centre of attention. The strait carries about a fifth of global oil consumption, or 18-19 million barrels per day, including crude, condensate and fuel.

Iran - a member of the Organization of the Petroleum Exporting Countries (OPEC) - currently produces about 3.3 million barrels per day and exports more than 2 million barrels of oil and fuel per day.

According to experts' analysis, in case of supply disruption from Iran, the spare production capacity of OPEC and its alliance partners, including Russia, can temporarily offset the deficit equivalent to Iran's current output.