City group: "Brent" can jump up to $ 90 if he closes the street of hormuz

The ‘City Group’ group expected the price of ‘Brent’ crude oil to jump up to about $ 90 a barrel if the street of hormuz is closed, but added that a long stop of the shipping movement over this important course is probably not. The bank analysts, including Anthony Yuan and Eric Lee, wrote in a research note that “any closure of the sea street could lead to a sharp rise in prices,” in the bank’s scenario that expects prices to rise. They added: “But we believe the closing period will be short, because all attempts will focus on reopening it, which is why the closure is unlikely to continue for several months.” An important sea market for the oil market is a narrow waterway at the entrance to the Arab Gulf through which it goes to one fifth of daily global oil production, including exports of senior OPEC producers such as Saudi Arabia and Iraq. The expectations of the city group indicate that approximately 3 million barrels per day can be disrupted for several months. The bank suggested that any disruption of the raw exports of Iran could be less than expected, indicating that Iranian consignments were deteriorating, and that Chinese refineries began to reduce their Iranian oil purchases. Brent Ru contracts are currently being traded at a level of about $ 77 a barrel.