Global crude oil prices may reach $150 per barrel if tensions between the US and Iran escalate, as per a report by energy research firm Rystad Energy. The recent conflict has led to a surge in oil prices and a drop in financial markets, with 11.8 million barrels per day of oil production disrupted across six Gulf producers. The situation remains uncertain, with Brent crude prices spiking to about $94.5 per barrel before easing.
The conflict has caused the most significant supply disruption in modern energy markets, according to Rystad Energy’s Senior Vice President Jorge Leon. The impact could be lessened by strategic petroleum reserve releases, reduced crude imports by China, and the diversion of around 5 million bpd of crude through Saudi Arabia’s Yanbu export route. The next few days will be crucial in determining if diplomacy can prevail or if the conflict escalates further.
Rystad Energy’s report indicates a reduced likelihood of a diplomatic resolution in the near term, leading to continued oil price volatility. The West Asia conflict has already removed 1 billion barrels of crude supply from global markets in the past three months, equivalent to nearly twice the US Strategic Petroleum Reserve. Brent crude traded over 2% higher at $95 per barrel, while US WTI crude rose 4% to $93.64 per barrel.
