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Brent crude jumped 10 per cent to about $80 US a barrel over the counter on Sunday, oil traders said, while analysts predicted that prices could climb as high as $100 US after U.S. and Israeli strikes on Iran plunged the Middle East into \u200ba new war.<\/p>\n
The global oil benchmark has rallied this \u200byear and reached $73 US a barrel on Friday for its highest since July, buoyed by growing concern over the potential attacks that arrived a day later. Futures \u200btrading is closed over the weekend.<\/p>\n
“While the military attacks are themselves supportive \u2060for oil prices, the key \u2060factor here is the closing of the \u200cStrait of Hormuz,” said Ajay Parmar, director of energy and refining at ICIS.<\/p>\n
Most tanker owners, oil majors and trading houses have suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz, trade sources said, after Tehran warned ships against moving through \u2060the waterway. More than 20 per cent of global oil is moved through the Strait of Hormuz.<\/p>\n
“We expect prices to open [after the weekend] much closer to $100 US a barrel and perhaps exceed that level if we \u200csee a prolonged outage of the Strait,” Parmar said.<\/p>\n
Middle East leaders have warned Washington that a war on Iran could lead to oil prices jumping to more than $100 US a barrel, said RBC analyst Helima Croft. Rabobank analysts are slightly less bullish, seeing prices holding above $90 \u200ba barrel in the near term.<\/p>\n
The OPEC+ group of oil producers agreed on Sunday to raise output by 206,000 barrels per day (bpd) \u2060from April, a modest increase representing less than 0.2 per cent of global demand.<\/p>\n
While some alternate infrastructure could \u2060be used to bypass the Strait of Hormuz, the net impact from its closure would \u2060be \u2060a loss of 8 million to 10 \u200bmillion bpd of crude oil supply even after diverting some flows through Saudi Arabia’s East-West pipeline and Abu \u200bDhabi’s pipeline, said Rystad energy \u2060economist Jorge Leon.<\/p>\n
Rystad expects prices to rise by $20 to about $92 US a barrel when trade opens.<\/p>\n
The Iran crisis also prompted Asian governments and refiners to assess oil stockpiles and alternative shipping routes and supplies. Kpler analysts said in a webinar on Sunday that India might turn to Russian oil to make up for potential \u2060Middle East supply loss. <\/p>\n","protected":false},"excerpt":{"rendered":"Listen to this article Estimated 3 minutes The audio version of this article is generated by AI-based technology.…\n","protected":false},"author":2,"featured_media":508927,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-508926","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/508926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=508926"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/508926\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/508927"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=508926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=508926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=508926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}