‘Crude could hit $150 within weeks’

ANI

dubai (uae)

Global oil markets are facing a severe supply crunch, with crude prices likely to surge further and potentially touch $150 per barrel within weeks if ongoing geopolitical tensions persist, according to Abhishek Kumar, senior oil analyst at Sparta Commodities.

In an exclusive interaction with ANI on Monday, Kumar said the oil market is currently being driven by both real supply disruptions and a rising risk premium amid escalating tensions in the Middle East.

"We are already at upward of $100 per barrel. The physical benchmark for crude is 140, which is the level at which the real barrel is moving to the refineries. If the situation remains elevated for another few weeks, the market can very easily reach $150," Kumar said.

He added that the only solution is demand destruction. "The market has to consume less oil. To balance supply and demand, the market has to undergo demand destruction to the tune of 10 to 12 million barrels per day. Then only will prices take a breather. But if demand remains as it is, $150 will not be far away," he noted.

Highlighting the scale of disruption, Kumar noted that the global oil market is witnessing a supply shortfall of around 10 to 12 million barrels per day, which accounts for nearly 10% to 12% of total supply. He highlighted the structural nature of the crisis, noting that no country can fulfil a 10% loss in the market. The Strait of Hormuz, a critical global oil transit route, has emerged as a key flashpoint. Kumar pointed out that the situation has worsened following recent developments, including statements by US President Donald Trump on potential blockades.