Oil Price Forecast: Supply Shock and Bullish Technicals Point to More Upside
By:
Key Points:
- Brent crude oil remains supported by U.S.-Iran tensions, the blockade, and the closure of the Strait of Hormuz.
- Oil prices could test the $125 to $135 zone, with a possible extension toward $150-$200 if supply flows remain restricted.
- A sudden peace deal, government intervention, or demand destruction could trigger a correction in oil prices.
Brent crude oil (BCO) has surged above $100 on the back of ongoing U.S.-Iran tensions, the blockade and the closure of the Strait of Hormuz, which has placed supply at risk. In my opinion, this situation leaves oil prices on track for a test of the $125 to $135, with the possibility of an extension to $150. This article presents the macro drivers, the technical setup and the risks involved in the next leg up for oil prices.