The World Bank is still cautioning on oil prices, saying that even a small disruption to oil supply could take around 2 million barrels a day out the market.
Snippets from the report:
- in a worse case scenario is a situation similar to the oil crisis of the 1970s, which would could push oil prices up to between $140 and $157 a barrel (
In October 1973, Arab oil-producing nations cut exports to the US and other countries that supported Israel in the Yom Kippur war. Oil prices soared.) - “The latest conflict in the Middle East comes on the heels of the biggest shock to commodity markets since the 1970s – Russia’s war with Ukraine,”
- “That had disruptive effects on the global economy that persist to this day.”
- the global economy was in a better position to withstand a supply shock than it had been during previous conflicts in the Middle East
- the global economy is still recovering from the energy price spikes seen last year
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Brent has subsided from its post-Hamas-terrorism-attacks highs: