Iran threatens to attack oil facilities in Saudi Arabia, the United Arab Emirates and Qatar in retaliation
Israeli attack on Iran's natural gas field 'makes oil prices explode' again.
Brent crude was trading at $112/barrel on Thursday morning and its WTI rose more than 5% on Wednesday as Israel and Iran step up attacks on energy infrastructure in the Middle East.
Brent: blend of crude oil produced in the North Sea (between the UK and Norway), used as a price benchmark for Europe, Africa, the Middle East and much of global exports.
WTI (West Texas Intermediate): Crude oil extracted mainly in Texas and other regions of the USA, price benchmark mainly for the North American market
Iran intends to respond
The Revolutionary Guard warned people to stay away from several facilities it described as “legitimate and main” targets, according to Iranian state media.
According to nightmare forecasts, the oil market could lose between 11 and 16 million barrels per day over the next four to six weeks as the Strait of Hormuz remains virtually closed, according to Citi. That could push Brent prices to $110-$120 a barrel, the bank said.In a more severe scenario, Citi said a prolonged power outage or wider attacks on energy infrastructure could push prices to an average of $130 in the second and third quarters, reaching as high as $150 Brent or even $200, including oil products.
