Analysis: Oil and Gas Prices Expected to Trade Near Current Levels Throughout March

Deep News
Mar 09

According to an analysis by Norbert Ruecker, an analyst at Swiss private bank Julius Baer, oil and natural gas prices are likely to fluctuate around their current levels during March. This outlook considers evolving supply disruptions and production halts initiated by some producers. Ruecker anticipates that up to 75% of Middle Eastern oil supplies reliant on shipping through the Strait of Hormuz could face temporary interruptions next week. However, he notes that Saudi Arabia, the UAE, and Iraq possess pipelines that can bypass the strait. While these temporary production stoppages may reduce the oil market surplus projected for this year, they are not expected to eliminate it entirely. The analyst added that stagnant demand and increasing production, particularly from South America, should help maintain ample supplies. Nonetheless, rising prices for automotive fuels warrant attention, especially in the United States. The report also highlighted a potential risk: should the Trump administration impose restrictions on oil exports, it could trigger a more severe and prolonged spike in oil prices.

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