Lates News

The U.S. Energy Information Administration (EIA) said on Tuesday that oil prices may continue to rise in the coming months even if the Strait of Hormuz reopens. The agency currently forecasts an average spot price of $96 per barrel for Brent crude oil this year, higher than the previous forecast of $78.84, and retail gasoline and diesel prices are expected to continue to rise. The EIA stated that even if the war ends and oil transportation through the Strait of Hormuz fully resumes, it will take several months for oil prices to remain high until oil transportation fully recovers and Middle Eastern oil-producing countries return to normal production levels. The EIA said, "Just as we have never seen the strait closed before, we have also never seen it reopen. What it will look like remains to be seen, and we will maintain a risk premium on oil prices throughout the forecast period because we expect the uncertainty of future supply disruptions to keep prices above pre-conflict levels."