Oil Could Hit $200 If Hormuz Stays Near-Closed for Six More Weeks, Expert Warns
Crude Oil Prices Today | OilPrice.com • • business
Key Points:
- Oil prices could surge to $200 per barrel or higher if the Strait of Hormuz remains nearly closed, according to Fereidun Fesharaki, Chairman Emeritus of FGE NexantECA.
- Currently, about 100 million barrels of oil per week are not passing through the strait, with monthly losses reaching 400 million barrels, which could lead to astronomical market impacts if the situation persists.
- Fesharaki projects that oil prices will first reach $150 per barrel and then potentially exceed $200 within six to eight weeks if the blockade continues, regardless of political statements.
- The International Energy Agency may release strategic oil reserves in mid-April and possibly June, but a prolonged closure could force major structural changes in global energy and trade, potentially causing a serious global recession.
- Other analysts, including those at Macquarie Group, also warn that extended conflict in the Middle East could push oil prices to record highs of $200 per barrel during the second quarter.
