The price of Brent crude oil rose at the market opening, starting the week at over 115 US dollars per barrel. Prospects for a swift de-escalation of the conflict between the USA, Israel, and Iran have worsened, and most oil traders now expect the conflict to drag on into April and potentially beyond.
Without a realistic timeline for the reopening of the Strait of Hormuz, supply bottlenecks in global oil markets are likely to tighten further, as the recovery of production volumes in the Gulf is expected to take longer and the daily growing backlog of shipments will likely be slow to normalize.
Against this backdrop, crude oil prices are expected to remain at high levels for longer and could even rise toward 150 dollars without realistic prospects for normalization.
Ricardo Evangelista – Senior Analyst, ActivTrades
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