Oil Prices Soar Amid Middle Eastern Tensions, Standard Chartered Warns of Sharp Spikes
Oil prices nearly reached $110 per barrel on Thursday amid escalating tensions in the Middle East. Standard Chartered analysts expect high volatility to persist and sharp price spikes to become more frequent.
The conflict has led to a significant increase in oil prices, with Brent trading at $103.58 per barrel and WTI slightly above $98 as of Friday morning. The bank's analysts believe that the situation will continue to be driven by news events, leading to sharp fluctuations in oil prices throughout the third quarter.
Standard Chartered also noted that the middle distillates market - diesel fuel, gasoil, and jet fuel - remains tense due to low inventories, limited spare capacity, and logistical disruptions. The bank expects these fuels to retain their price premium over gasoline and warned of increasingly asymmetric price dynamics, where sharp increases may become more frequent.
The bank forecasts the average oil price in 2027 at $77.50 per barrel.