S&P Global Platts Analytics: Oil Could Go As High As $80/b

From SP Global, Authors: Brian Scheid, Andrew Critchlow

“Attacks on Saudi Arabia’s Abqaiq processing facility and Khurais oil field likely will cause oil prices to climb above $70/b and may test $80/b, analysts with S&P Global Platts Analytics said Saturday”.

“The sudden change in geopolitical risk warrants not only an elimination of the $5-10/b discount on bearish sentiment, but adds a potential $5-10/b premium to account for now-undeniably high Middle Eastern dangers to supply and the sudden elimination of spare capacity,” the analysts wrote. “As such, prices are likely to break out of the $55-65/b options range, more likely testing the high $70/b previously forecast, if not higher.” Full Report

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