An prolonged battle within the Center East is now the “probably” situation after the US escalation over the weekend, commodities analysts at ANZ stated on Monday morning.
“Dangers of provide disruption within the crude oil market have risen sharply following an escalation within the Israel-Iran battle,” Daniel Hynes and Soni Kumari, commodity strategists on the Australian lender, wrote in a notice.
“The probably situation (we estimate a 50% likelihood) in our view is an prolonged battle. This may see provides come beneath direct menace,” they stated.
“Nonetheless, the oil market is healthier outfitted to answer that than it has been up to now,” they added, noting that Opec has greater than 6mn barrels a day of spare capability that may be rapidly activated.
They anticipated a worth vary of $75-$85 a barrel “for this situation”.
