With escalating tensions in the Middle East, predictions have emerged that oil prices could soon break through $90 per barrel. Currently, international oil prices are recording in the mid-$80 range.
Andy Lipow, CEO of Lipow Oil Associates, predicted in an interview with Yahoo Finance on the 1st (local time) that international oil prices would soon exceed $90. He anticipated that “with the intensifying geopolitical tensions in the Middle East and the approaching holiday driving season, oil prices would break through $90.”
As tensions escalate between Israel and Hezbollah, a Lebanese armed group supported by Iran, the likelihood of Tehran directly intervening in cross-border conflicts is increasing.
Iran is a major oil-producing country, producing about 3 million barrels of oil per day which accounts for about 3% of global production. If Iran directly participates in the war, there is a high possibility of disruption in Iran’s production, which could lead to a complete cessation of supply in the Persian Gulf region.
Lipow predicted that international oil prices would surpass $90 from now until the end of the year when oil demand is high due to the upcoming driving season.
Recently, international oil prices have been soaring due to such geopolitical concerns.
On the same day, West Texas Intermediate (WTI) futures traded on the New York Mercantile Exchange recorded $83.38 per barrel, a 2.26% surge from the previous trading day. WTI has risen by more than 16% this year.
North Sea Brent Crude futures also closed the market at $86.60 per barrel, with a 1.88% increase. Brent Crude has also risen by more than 12% this year.