Preparations are underway to start the second round of talks to end the ongoing war between Iran, Israel and America. The first round of talks last weekend proved inconclusive. After which the war of words between the two sides became more heated and an atmosphere of uncertainty spread across the world. Iran ordered complete closure of the Strait of Hormuz again. Also said that if America and Israel take any military action, it will be responded to in the same way.
It is a different matter that America has started the blockade of Iran. Besides, it has also announced to impose a tariff of 50 percent against those doing any kind of trade with Iran. But the biggest question is that if the second round of peace talks between the two sides is not successful, then what will happen in the coming days? According to experts, if the war continues for the next few months, the prices of crude oil may even reach $ 250 per barrel. Let us also tell you about this in detail…
If the war drags on into the summer, experts believe that oil prices will have to rise so much that “there would be a historically significant decline in world oil demand. This would probably require Brent crude prices to rise above $200 to $250 per barrel and US gasoline prices to approximately $7 per gallon.”
if negotiations fail
Although at present the prices of crude oil are seen below 100 dollars per barrel, but a spark can set the prices on fire once again. If experts are to be believed, after the second round of talks it will be known in which direction the prices of crude oil can go in the coming months. At the beginning of the conflict, both of these energy products reached prices not seen since the early months of 2022, when Russia invaded Ukraine. A few days ago, in the Macquarie report, crude oil prices were estimated to reach $ 200 per barrel.
The report predicted an end to early April, and said a decline in oil prices would be seen. But this has not happened yet. After the failure of the first round of talks in Islamabad, preparations are now underway for the second round of talks, but the attacks between Iran and Israel-America have not ended. This means that oil prices will reach well above their all-time high of around $147.50 for Brent in 2008 in the coming months.
They also expressed the possibility
Macquarie is not alone in saying that oil prices will rise. According to the Wall Street Journal, Saudi Arabia’s energy leaders have estimated that if the conflict continues until the end of April, oil prices could reach $180 per barrel. In a note issued to employees on March 20, United Airlines (UAL) CEO Scott Kirby said that his company estimates that oil prices will reach $175 per barrel and will not return to the $100 per barrel level until 2027.
Kirby said the increased price of jet fuel, which has doubled, could burden United with an additional $11 billion in annual fuel expenses if oil prices remain high. Kirby wrote that, frankly, I think there is a good chance that the situation will not be that bad, but as you will read below, there is no harm in us preparing for that situation.
Price can reach up to $250
Speaking at S&P Global’s CERAWeek – a major energy conference – Dave Ernsberger, head of S&P Global Energy, told Yahoo Finance that his team estimated that if the war continues, market crude prices could easily reach $200 and then $250 per barrel. Ernsberger said that we have not yet felt the real impact on the economy of the loss of one-fifth of the global energy supply, because only three weeks have passed. In some ways, there are no limits. This means that in the coming days the prices of crude oil may be seen at a different level.
What are the prices of crude oil?
However, in the international market the prices of crude oil are seen below $100 per barrel. At present, the price of American crude WTI is trading at $ 90.93 per barrel with a decline of 0.38 percent. A few days ago, the price of American oil was seen at more than $115 per barrel. Whereas crude oil of Gulf countries is trading with a slight rise. If we look at the data, the price of Brent crude is trading at $ 94.91 per barrel with an increase of 0.12 percent. Whereas a few days ago, more than $110 per barrel was being seen.
