Oil May Spike to $200 If Hormuz Remains Shut, Fesharaki Says

Article content(Bloomberg) — Oil may surge to $150 or $200 a barrel if the near-closure of the Strait of Hormuz persists over the next six to eight weeks because of the Iran war, according to energy-market consultancy FGE NexantECA.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“Every week, 100 million barrels of oil is not going through, and every month, 400 million barrels are not going through,” Chairman Emeritus Fereidun Fesharaki said in a Bloomberg Television interview with Haslinda Amin. “So, within a period of time, these losses to the market will be astronomical.”Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentArticle contentOil has roared higher this month as the war between the US, Israel and Iran rocks the Middle East, with the Strait of Hormuz closed to all but a handful of vessels and Persian Gulf producers shutting-in millions of barrels of daily supply. Futures were volatile Tuesday, with a fresh attack on a tanker lifting prices, but a report of President Donald Trump telling aides he’s willing to end the campaign with the waterway still closed boosting appetite for risk.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentFesharaki dismissed the effectiveness of verbal interventions — including those from President Trump about possibly ending the conflict — saying the physical reality of supply disruptions that would ultimately drive prices. “The market will choke, and the prices will go up,” he said. “It doesn’t matter what the president says on the political front.”Article contentThe outlook from Fesharaki for potentially much higher prices echoes other recent calls, with the crisis dragging on into a second month.

Macquarie Group Ltd. has said that oil may hit $200 a barrel if the Strait of Hormuz stayed shut, while Societe Generale SA flagged scope for “credible spikes” toward $150.Article contentOil futures swung on Tuesday at the end of a volatile month, buffeted by a Wall Street Journal report that Trump is willing to end US military operations in Iran even if the Strait of Hormuz remains closed. Additional volatility was driven by another Iranian strike against a tanker in the Persian Gulf.Article contentThis story was produced with the assistance of Bloomberg Automation.Article content—With assistance from Sarah Chen.Article content(Updates to add comparable outlooks in penultimate paragraph.)Article contentTrending Posthaste: Gold's fall from grace could be worse than markets expect News LNG Canada signs key pipeline agreement required for phase two expansion Energy Air Canada CEO likely sealed his own fate in failing to learn from first language misstep, governance experts say Airlines Subscriber only. Chinese are burying their dead in empty apartments rather than pay skyrocketing cemetery costs Subscriber only Financial Times Air Canada CEO to retire following English-only video controversy Airlines Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Gold's fall from grace could be worse than markets expect News LNG Canada signs key pipeline agreement required for phase two expansion Energy Air Canada CEO likely sealed his own fate in failing to learn from first language misstep, governance experts say Airlines Subscriber only. Chinese are burying their dead in empty apartments rather than pay skyrocketing cemetery costs Subscriber only Financial Times Air Canada CEO to retire following English-only video controversy Airlines