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<Commodity>Citi: Oil Prices May Reach US$90 If Iranian Production Disruption Lasts for Mths
If hostilities between Iran and Israel escalate, leading to a disruption of Iran's daily oil exports of 1.1 million barrels, the prices of Brent oil could be approx. 15-20% abo...
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<Commodity>Citi: Oil Prices May Reach US$90 If Iranian Production Disruption Lasts for Mths
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If hostilities between Iran and Israel escalate, leading to a disruption of Iran's daily oil exports of 1.1 million barrels, the prices of Brent oil could be approx. 15-20% above pre-conflict levels, reaching around US$75 to US$78 per barrel, Citi Research published a research report saying.

Iran is OPEC's third-largest oil producer, with a daily output of about 3.3 million barrels, Citi Research added. If the production disruption lasts for several months, oil prices could be boosted to US$90 per barrel.

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Currently, the market is concerned that Iran might close the Strait of Hormuz. The broker believed that the impact would be temporary, as all parties would focus on a quick reopening.

Furthermore, due to the current higher oil prices and reduced Chinese purchases, the impact of Iranian oil export disruptions on oil prices might be less than expected.

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