Oil Prices Could Reach $200 Per Barrel Without US and Chinese Intervention

Gabor Gurbacs, a financial expert, warns that oil prices could surge to $200 per barrel without intervention from major market players such as the US and China. He notes that recent disruptions in the Strait of Hormuz led to a loss of nearly 8.3 million barrels per day of Gulf production. In response, China reduced its crude demand by about 3.9 million barrels per day, while the US and IEA released an additional 3.3 million barrels per day into the market.

This combined action serves as a crucial pressure valve on global oil prices, according to Gurbacs. Without it, he believes that oil prices could skyrocket to $200 per barrel due to supply shocks.