The world market is preparing for prolonged oil price volatility – media

The protracted conflict between the US and Iran continues to affect the global energy market, and market participants expect oil prices to remain high for a long time.

This is stated in a Bloomberg Intelligence survey.

Most respondents predict that the average price of Brent crude oil over the next 12 months will be between $81-100 per barrel.

Almost two-thirds of market participants also expect an additional “risk premium” of $5-15 per barrel to remain due to geopolitical instability.

Bloomberg Intelligence analysts note that the market does not yet predict a complete collapse of the current pricing model, but considers the current instability to be long-term.

One of the key risk factors remains the Strait of Hormuz – one of the world’s main oil supply routes.

Due to the threat of attacks and restrictions on shipping, global energy supplies have been significantly reduced, and the market has faced the risk of a new wave of inflation.

According to market participants, possible disruptions could lead to a loss of 3 to 7 million barrels of oil per day.

Some experts also believe that flows through the Strait of Hormuz will remain below normal for a long time to come.

At the same time, traders are increasingly turning to risk insurance strategies and reducing bets on further rapid price growth.

Separately, further increases in shale oil production are forecast in the United States. According to estimates by the US Energy Information Administration, production in the country could increase to a record 14.1 million barrels per day in 2027.

It was previously reported that the US and Iran may soon agree on a basic agreement that should stop tensions in the region and pave the way for full-fledged negotiations on the nuclear program.

Recall, US Secretary of State Marco Rubio announced the completion of the military operation against Iran called Epic Fury, which had been ongoing since February.