00:00 Speaker A
Oil prices wavering today after spiking on supply disruption concerns, as conflict escalates in the Middle East. Yahoo Finances, Ines Ferre is here with a closer look at where prices could be headed, and Ines, what do we know?
00:16 Ines Ferre
Yeah, Brad, and we saw oil prices spike initially last night, as much as 5.7% when it came to Brent, but then they have come down since then. JP Morgan analysts are noting that oil infrastructure in Iran has remained intact. Uh, oil tankers are still going through the Strait of Hormuz, so that is steady, and the outlook will really depend on what Iran does as far as retaliation, uh, move is concerned. Now, the consensus is that there is some limited appetite for a broader conflict. What Iran could do is it could go up, uh, it could target U.S. naval bases, uh, it could also back Houthi attacks on tankers, uh, it could also go after infrastructure in the region, and of course, closing off the Strait of Hormuz, and that is where, uh, JP Morgan analysts see oil could spike to anywhere between 120 and $130 per barrel. Uh, but that is something that is a low probability, according to Wall Street, that they would actually go through with that closure, and JP Morgan analysts also noting that Brent has averaged $67 quarter to date, in line with what their estimates are. And I just also want to point out that President Trump has tweeted over the last 15 minutes, uh, tweeting to the Department of Energy, drill, baby, drill, and I mean, now he has stated numerous times he wants energy prices lower, he does not want to see oil going higher right now.
02:43 Speaker A
Ines, we’re going to continue to try track some of these fluctuations within oil markets. Thank you so much.
02:49 Ines Ferre
Thank you.
