2024-04-16 14:30:52 ET
Summary
- Global oil supplies are extremely vulnerable -- more than most people realize -- in the event of war and/or other geopolitical acts.
- The disruption of key global transit choke points, such as the Strait of Hormuz, Suez Canal, and Bab el-Mandab, could severely impact global oil supplies.
- Attacks on oil export infrastructure, in Saudi Arabia and elsewhere, could also cause massive disruptions in global oil supplies.
- A major disruption of global oil supplies can cause global oil prices to rise to $300 and above for a prolonged period.
In 1973, the price of crude oil rose from below $3.00 per barrel to almost $12 per barrel. This quadrupling (+300%) of the crude oil price occurred as a result of the “Arab Oil Embargo.”
We believe that events in 2024 could potentially produce an oil price shock of equal or even greater magnitude....
Read the full article on Seeking Alpha
For further details see:
Oil Price Shock 2024: The Path To $300