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Why oil prices won’t spike above US$100 a barrel despite escalating Mid-East conflict
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Beyond the risks associated with an all-out war in the Middle East, Citibank believes that crude oil prices are headed for US$60 a barrel in 2025.
PHOTO; BLOOMBERG
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SINGAPORE – Crude oil may get a few more pops from a widening Middle East war but a surge to the highs seen after a Russian invasion of Ukraine in 2022 is highly unlikely given supplies will surpass demand for the liquid needed to run power plants and transport, analysts said.
Global benchmark Brent was trading at US$80.70 per barrel on Oct 8, up 16.6 per cent from a two-year low of US$69.19 in September, amid the latest escalation of the year-long conflict in the Middle East – a region that accounts for about a third of the world’s oil production.
