Lates News

Some top market analysts say that the oil prices have not fully reflected the impact of the largest supply disruption in history. Saad Rahim, Chief Economist of Trafigura Group, stated at the Financial Times Commodities Global Summit held in Lausanne on Tuesday that the Iran conflict has led to a reduction of approximately one billion barrels of oil supply so far. If the conflict continues, this number may increase to 1.5 billion barrels. Frederic Lasserre, Head of Analysis at Gunvor Group, said that if the war lasts for another month, oil inventories will be depleted. Since the outbreak of the Iran war, Brent crude futures prices have fluctuated dramatically. At one point, the price reached nearly $120 per barrel as peace negotiations seemed likely, but then fell back. On Tuesday, the price hovered around $95 per barrel, partly because people believed the conflict would soon end. Rahim said, "This scale seems to have surpassed the market's understanding." He also pointed out that if a peace agreement is reached, it will take some time for trade flows to return to normal, so there is indeed a significant gap between the market's perception and the actual situation.