After reaching its highest price since October, oil could rise even further and possibly breach the US$100 mark this year if tensions in the Middle East continue to escalate, analysts say.
was trading for between US$85 and US$90 per barrel late last week ahead of Iran’s attack on Israel. Following the attack, economists from Moody’s Analytics Inc. said they expect the price to increase to between US$90 and US$95 per barrel. The analysts noted two possible scenarios from here on.“The most likely is a measured and restrained response from Israel that de-escalates tensions.
“The higher risk premium in the oil market will be here to stay for the foreseeable future,” they said in a note. “Our current 2024 and 2025 oil price forecast may prove to be too conservative and require upward revisions.”can have a double impact on the economy. They can turn out to be a boon for Canadian oil producers, primarily in Alberta, who went through a weak 2023.
It added that the situation could be worse for Asian nations, where disinflation has already stalled, so any further oil price hikes could exacerbate the situation.Organization of the Petroleum Exporting Countries
Oil Prices Middle East Tensions Escalate
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