Oil Could Head to $90 If Iranian Supply Disrupted

Oil prices could soon rally above $90 a barrel amid growing concerns over the prospect of steep declines in Iranian crude, according to industry analysts.

Brent crude was on track to post a fourth week of declines in five on Friday, with the global oil benchmark poised to slip more than 1 percent amid continued volatility in the energy market.

West Texas Intermediate graph

Investors are seen weighing bullish factors that include potential supply disruptions to Iranian crude exports against more bearish indicators, such as a ramp-up in production by OPEC and its allied partners.

“Venezuela’s ticking time bomb together with the return of Iran’s oil industry to the sanctions era has all the makings for a major supply shock,” Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note published Friday.

“The rising tide of global supply outages will offer a lifeline to those of a bullish disposition. (And) the potential for another price spike cannot therefore be discounted,” he added.

via CNBC