Wall Street is sounding the alarm on surging oil prices, suggesting investors haven’t seen the worst yet.
On Monday, West Texas Intermediate settled above $100 per barrel for the first time since 2022, at $102.88. Brent crude settled above $112.78 per barrel.
“We really do have a physical oil disruption where oil is being left in the ground, and every day this goes by, the disruption gets worse,” said Andy Lipow, CEO of Lipow Oil Associates.
“The longer this goes on.. the higher that the oil price is going to go,” he said. “If this goes on another 3-4 weeks, you’ll see Brent at $130 or higher.”
Macquarie Group recently suggested oil could head to $200 if the conflict continues into the summer.
President Trump has threatened to strike Iran’s energy infrastructure if a deal is not reached soon, which includes reopening the Strait of Hormuz, the vital passageway that has been at a near standstill since the Middle East conflict broke out on Feb. 28.
“For nearly four weeks, markets have shown remarkable resilience in the face of disruption, supported by a combination of pre-war surplus, crude-on-water, and policy barrels that provided a temporary buffer and kept prices contained,” said Paola Rodriguez-Masiu, chief oil analyst at Rystad Energy in a recent note.
“That phase is now ending,” she added.
