Global oil benchmarks are unlikely to return to pre-conflict levels this year
even if a US-Iran agreement is reached, according to Shane Oliver of Australian
wealth manager AMP. He said it will take time for shipping through the Strait of
Hormuz to normalize and that markets will continue pricing in a risk premium for
potential supply disruptions. Oliver estimates West Texas Intermediate could end
the year around $80 a barrel and Brent around $85, compared with roughly $67
before the conflict, with higher levels possible if the nuclear issue remains
unresolved.
