New Delhi, May 01: Global crude oil prices may touch 150 dollars a barrel within two weeks if the American blockade continues and Strait of Hormuz remains closed.
Crude oil saw a significant surge, with Brent crude briefly touching 126 dollars a barrel due to intensified concerns over a prolonged US-led blockade of Iranian ports and instability around the Strait of Hormuz, Mr Dat Tong, Market Strategist of Exness said.
While benchmark Brent and WTI are currently trading between $105 and $109, the physical market is reportedly seeing prices as high as $145 due to severe supply shortages.
Mr Dat Tong, energy expert, said that the path to $150 depends on how long the disruption in the Strait of Hormuz continues and whether traders lose confidence in a near-term resolution.
“Oil prices could continue to climb toward the $150 level if the disruptions in the Strait of Hormuz persist for an extended period and hopes of a resolution decline, pushing market participants to hedge against the scarcity in supply,” he said.
Senior Analyst Abhishek Kumar warned that $150 is easily reachable within weeks if the current 10–12 million barrel-per-day shortfall is not addressed through massive demand destruction“Oil prices could continue to climb toward the $150 level if the disruptions in the Strait of Hormuz persist f
He said. “A major breakdown of diplomatic efforts or military escalations, with the Strait of Hormuz remaining closed, could be the next catalyst for another oil spike.”
Mr Jay Valecha, Chief Investment Officer at Century Financial, said a move to $150 or $200 is not guaranteed, but the risk has risen because the next major trigger depends on developments between Washington and Tehran.
He further stated that recent price action shows how quickly the market can reprice when supply fears build. WTI jumped from about $67.32 to $119.56 in just eight days during the first phase of US-Iran tensions in March, before correcting and then returning close to the $119 mark within about 28 days. Ends
