- The Oil price extends the advance to near $82.80 as Qatar’s Kaabi warns of serious oil supply concerns.
- Qatar’s Kaabi said that Middle East conflicts could drive oil to $150 a barrel.
- Higher oil prices are expected to prompt inflationary pressures across the globe.
West Texas Intermediate (WTI), futures on NYMEX, surges to near $82.80 during the European trading session on Friday, the highest level seen since July 2024. The oil price has extended the advance after Qatar’s Energy Minister Saad al-Kaabi warned that the ongoing war in the Middle East, which involves the United States (US), Israel, and Iran, could drive oil to $150 a barrel, Financial Times (FT) reported.
Saad al-Kaabi expressed concerns in the interview that oil producers in the Gulf countries would declare force majeure, a situation that free parties from liability in case of an unforeseeable event, and suspend supply if hostilities continue. Kaabi added that even if the war ended immediately it would take Qatar “weeks to months” to return to a normal cycle of deliveries.
Earlier this week, Qatar’s largest Liquified Natural Gas (LNG) plant, Ras Laffan facility, was forced to stop production after it was hit by an Iranian drone.
Fears of oil supply shortage has strengthened the oil price, and are further likely to prompt supply-side inflation expectations in the entire world. Lately, traders have pared dovish expectations for global central bankers.
Meanwhile, the Iran conflict has entered in its seventh day and has been escalating as US President Donald Trump has expressed disapproval to Mojtaba Khamenei for the succession of Supreme Leader Ayatollah Ali Khamenei, Axios reported. Trump has shown willingness to involve in Iran’s diplomacy for the appointment of new Supreme Leader.
In the US, investors will focus on the Nonfarm Payrolls (NFP) data for February, which will be published at 13:30 GMT. Investors will pay close attention to the US NFP data to get fresh cues on the Federal Reserve’s (Fed) monetary policy outlook.
