Barclays anticipates that oil prices may rise in early trading, primarily driven by concerns over potential disruptions in the Strait of Hormuz, as noted in their report “No time for Caution” led by Amarpreet Singh. While some oil volumes have already been taken offline in the Kurdistan region of Iraq, the firm acknowledges that spare capacity is currently lower than previous geopolitical events, which could lead to prices potentially reaching $100 per barrel if disruptions persist. This situation is compounded by OPEC+’s recent decision to increase output by 206,000 barrels per day, aiming to benefit from heightened demand without aggressive supply hikes. As Saudi Arabia, Kuwait, and the UAE ramp up rig activity to meet these new quotas, the outlook for Middle East oil services appears positive amidst ongoing market volatility.
Barclays forecasts potential move towards $100 Brent amid tensions
