Bank of America Warns Oil Prices Could Spike to $150 a Barrel
Bank of America has raised its year-end forecast for Brent crude oil to $95 U.S. a barrel, warning that prices could reach as high as $150 if global inventories continue to be depleted and disruptions persist in key regions.
The New York-based bank made the warning following recent developments in the Middle East, including targeted attacks on Saudi Arabia's energy infrastructure by Iran-backed Houthi rebels and severely constrained traffic in the Strait of Hormuz shipping lane near Iran.
Only about two oil tankers a day are currently traveling through the Strait of Hormuz, down from over 100 ships per day before the U.S. attacked Iran, while Saudi Arabia's energy infrastructure has been temporarily brought to a halt.
The current price of Brent crude oil is $98.21 U.S. per barrel, after briefly touching $110 earlier in the week following heightened tensions between the U.S. and Iran.