What’s Next for Oil? Analysts Weigh In After Iran’s Attack
- Risks remain for market although futures ease following strike
- Banks highlight tighter sanctions among the possible outcomes
Iranian crude production has risen by more than 20%, over the past two years to 3.4 million barrels a day, or about 3.3% of global supply.
Photographer: Ali Mohammadi/BloombergOil futures were barely moved by Iran’s unprecedented attack on Israel, with traders attributing the lackluster price action to the notion that the strike was well-flagged beforehand, and expectations that the conflict will remain contained in the aftermath. As Israel weighs its response to the assault, here’s what market watchers are saying about the outlook:
Citigroup Inc.’s base case is for tensions to remain “extremely high” in the Middle East, underpinning prices. That’s prompted the bank to raise its short-term price forecasts, with the three-month target for West Texas Intermediate increased by $8 a barrel.