Brent Crude Price May Hit $120-$125 Amid Ongoing Supply Disruptions

Dubai-based Sparta Commodities Senior Oil Analyst Abhishek Kumar has warned that Brent crude may climb to USD 120-125 a barrel if Middle East supply disruptions persist. This is due to tightness in global supply following an attack on the Yanbu or East-West pipeline, which removes close to 4% of global supply.

Kumar noted that the loss of supply through the East-West pipeline could keep prices elevated and cause demand destruction even at current levels. He stated, 'The next target would be $120, $125 if this continues.'

The analyst cautioned that it's difficult to predict the exact price level but emphasized that it's a 'very dire situation' in terms of physical supply of crude oil at a time when SPR and commercial inventory is already low.