India · Donald Trump · Iran · Strait of Hormuz · Fortune Technology
Agriculture-reliant economies may also cut back on seeding due to rising prices of diesel and fertilizer
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“Fortune is close to the first planting season in Asia, but farmers in places like Thailand don’t have the financial means to plant crops,” Chen concludes.
Key facts
- Brent crude prices are hovering around $100 a barrel, down from a post-Iran war peak of $126 in April
- (WTI crude jumped on Tuesday to over $100 a barrel after U.S. President Donald Trump said the ceasefire with Iran was on “ life support ”.)
- On May 10, India Prime Minister Narendra Modi urged citizens to cut back on overseas travel and to work from home
- Experts and analysts estimate that oil prices could skyrocket past $150 a barrel if the Strait of Hormuz remains closed through the end of June
Summary
Global oil inventories are approaching their lowest point in eight years, with Goldman Sachs analysts estimating that stocks could fall to 98 days of global demand by the end of May. Brent crude prices are hovering around $100 a barrel, down from a post-Iran war peak of $126 in April. “The market has been complacent,” Chen Chien-Ming, an associate professor of operations management at Singapore’s Nanyang Technological University (NTU), says. Experts and analysts estimate that oil prices could skyrocket past $150 a barrel if the Strait of Hormuz remains closed through the end of June. Asia, with its deep reliance on fuel from the Middle East, is especially at risk.