A big warning has emerged regarding the global oil market. Macquarie Group has said that if the conflict related to Iran prolongs and the important sea route Hormuz Strait remains closed, then the price of crude oil could reach $200 per barrel. This situation can become a serious threat to the global economy.
Impact on supply, rise in prices
Oil supply is already being affected due to increasing tension in the Middle East. A large part of the world’s oil passes through the Strait of Hormuz, and its closure could lead to a huge reduction in supply. This is the reason why uncertainty regarding prices has increased in the market.
Traders’ bet: Oil may reach $150
According to Reuters, traders are already betting that Brent crude could reach $150 per barrel by the end of April. There has been a sharp increase in such bets in recent weeks, which reflects the growing concern of the market.
Current situation and prospects
Currently, Brent crude is trading around $107 per barrel, whereas earlier this month it had reached $119.50. Although it is below the 2008 record of $147, given the current situation, experts believe that prices could set new records.
impact on global economy
If oil prices remain at the level of $150 or $200 for a long time, it will have a direct impact on the global economy. This will increase inflation, put pressure on the supply chain and affect the budget of many countries.
Challenge for India too
This situation may become more challenging for a big oil importing country like India. Rising prices may increase government expenditure and put pressure on inflation. In such a situation, maintaining energy security and economic balance will be a big challenge in the coming times.