World oil prices surged by 5.6%, with Brent crude reaching $107.38 per barrel.

World oil prices recorded a significant increase in Wednesday's trading session (March 18) due to concerns about disruptions to global supply. At the close of trading, Brent crude rose 5.6% to $107.38 per barrel, while US crude also gained 4%, reaching $96.32 per barrel.

The price difference between Brent and WTI crude oil has reached a record high.

Notably, WTI crude oil futures closed at their biggest discount to Brent crude in 11 years. This was primarily due to pressure on US oil prices as domestic supply increased through the release of the Strategic Petroleum Reserve (SPR) and rising transportation costs.

Conversely, Brent crude oil prices are directly impacted by new conflicts targeting energy facilities in the Middle East. In particular, the closure of the Strait of Hormuz – a route for transporting approximately one-fifth of the world's daily oil supply – has created the largest supply shock in the history of the energy market.

Data shows a sharp increase in US crude oil inventories.

According to the Energy Information Agency (EIA), U.S. crude oil inventories rose by 6.2 million barrels to 449.3 million barrels in the week ending March 13. This far exceeded market forecasts of a 383,000-barrel increase. However, during the same period, gasoline and distillate fuel inventories recorded a decline.

The IEA is prepared to continue releasing its strategic reserves.

In an effort to cool down the market, Fatih Birol, Managing Director of the International Energy Agency (IEA), said member countries are ready to continue releasing more oil from strategic reserves onto the market "if necessary." This move follows last week's largest ever release of oil from strategic reserves to offset supply shortages and stabilize prices.

Mr. Birol emphasized that countries still have considerable room for maneuver. Currently, global strategic reserves still stand at approximately 1.4 billion barrels, and the recent release only represents about 20% of the total available reserves. As of March 16th, Brent crude oil was trading around $102 per barrel, an increase of about $10 compared to the date of the release plan announcement on March 11th, but still lower than the peak of $119.5 per barrel reached on March 9th.