Barclays says Brent could test $120/bbl if Middle East tensions persist

Core Viewpoint - Barclays predicts that Brent crude oil prices could reach $120 per barrel if the Middle East tensions continue for a few more weeks, citing stronger fundamentals and greater risks compared to previous conflicts [1] Oil Market Dynamics - Oil prices have surged due to the escalating U.S.-Israeli conflict with Iran, which has led to disruptions in the Strait of Hormuz, a critical passage for global oil and liquefied natural gas, carrying about 20% of the world's supply [1] - As of the latest data, Brent crude futures were trading at approximately $93.60 per barrel, while West Texas Intermediate was at $91.62 [1] Supply Constraints - The volume of oil stranded on tankers in the Middle East Gulf has increased by about 85 million barrels since the onset of the conflict, indicating significant supply constraints [1] - Production shut-ins are already occurring in Iraq and Kuwait, with potential spread to the UAE and Saudi Arabia over time [1] Price Projections - Barclays suggests that in a worst-case scenario, Brent crude could hit $150 per barrel before the end of the month [1]