Oil prices expected to reach $150 as Gulf supplies decline
March 10 (Reuters) - The war in Iran is currently cutting oil and petroleum product supplies from the Gulf by about 15 million barrels per day, which could push crude oil prices up to $150 a barrel, research and consultancy firm Wood Mackenzie said on Tuesday.
The Iranian Revolutionary Guard has vowed to prevent any oil from leaving the Middle East until the American and Israeli attacks cease.
The company said that the Gulf states "produce a total of 20 million barrels per day of liquids, and the market has been deprived of 15 million barrels per day of exports."
She added that "achieving market balance requires a decrease in oil demand, which is currently 105 million barrels per day, and in our view, this will require Brent crude to rise to at least $150 per barrel in the coming weeks."
She added, "In our view, the price of a barrel reaching $200 is not out of the question in 2026."
Europe faces particularly acute challenges, as Gulf refineries supply 60 percent of jet fuel and 30 percent of diesel.
The company added, "Much will depend on the duration of the war, the length of time the Strait of Hormuz is closed, and whether the U.S. Navy is able to ensure the safe passage of ships by escorting them."
Even after the conflict ends, the increase in supply will not be rapid.
