Crude Oil Prices Soar Amid Ongoing Conflicts in Iran

Crude oil prices have been on a rollercoaster ride due to ongoing conflicts in Iran, affecting global supply and driving up costs. As of now, the market is trying to reach its recent highs of $115-120 per barrel (based on WTI US market), with some analysts predicting it could double top and stall long-term.

If crude oil breaks through the 118-120 levels in the next few weeks, prices could surge past $135-140. Edgard Cabanillas from Alpine Trading is forecasting December Crude Oil futures to hit $147-149 within the next two months.

Cabanillas also highlights the inefficient US refining capacity, which cannot align with the country's predominantly light, sweet crude oil production. This has led to a reliance on importing heavy sour crude oil, resulting in higher crack spreads and potentially driving up prices further.