Brent price may gain $20 a barrel as early as on March 2

  LONDON: Brent oil prices may soar by $20 a barrel when trading starts on March 2 if no de-escalation around Iran is noted on Sunday, Rysta...

 

LONDON: Brent oil prices may soar by $20 a barrel when trading starts on March 2 if no de-escalation around Iran is noted on Sunday, Rystad Energy said in its review received by TASS.

"The most immediate and tangible development affecting oil markets is the effective halt of traffic through the Strait of Hormuz, preventing 15 million barrels per day (bpd) of crude oil from reaching markets," the consultancy said. "Alternative infrastructure in the Middle East can be used to bypass the Strait’s flows, but the net impact remains an effective loss of 8-10 million bpd of crude oil supply," the company noted.

"From a price perspective, we continue to believe that unless there are clear and credible signals of de-escalation over the weekend, oil markets will open sharply higher," Rystad Energy stressed.

"In such a scenario, Brent could jump by around $20 per barrel on Monday as risk premiums are rapidly repriced. At present, there are no signs of de-escalation," the company added.

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