economy
ENERGY SHOCK ON THE HORIZON Blockade of the key strait pushes oil prices to the sky
Blockade of the key strait pushes oil prices to the sky
TL;DR
- JP Morgan forecasts oil prices could reach $150 per barrel if the Strait of Hormuz remains disrupted until mid-May.
- The bank expects oil prices to soon trade at $120-$130 per barrel.
- US WTI crude oil reached $111.50 per barrel, surpassing Brent at $109.
- Disruptions in the Strait of Hormuz, a vital route for 20% of global oil and LNG, have impacted shipping since early March.
- Even with an immediate, unconditional reopening of the strait, normalization of global oil production and refinery supply chains would take three to six months.