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Oil is on pace for its best year since 2016 as global tensions and dwindling US inventories lift prices
American crude inventories fell to their lowest level in two months in the week ended December 20, propping up prices by cutting supply.
The investment bank pointed to a host of reasons, even Modern Monetary Theory, as factors in its forecast.
The commodities trader is already facing an investigation from the US Department of Justice regarding potential money laundering.
Experts say the Saudi oil crisis could send oil prices to $150 a barrel if the Iran-US conflict escalates and worsens the global downturn
Oil could rise to $85 a barrel without any escalation, Capital Economics says.
Prices climbed about 9% to hit a three-month high this week as traders feared the storm would squeeze supply.
Iran is squirrelling millions of barrels of crude oil in Chinese ports to avoid breaching US sanctions
Iran is safely storing its crude and freeing up its tankers, while China can tap the stockpile if supply is disrupted or sanctions end.
Oil is surging as traders brace for the UK’s response to Iran’s seizure of a British-flagged oil tanker
"Investors need to carefully watch the developments in Strait of Hormuz," one analyst wrote, as a fifth of global oil supply passes through it.
A fresh threat of US tariffs against Europe and disappointing manufacturing data tempered the market mood following the US-China trade war truce last weekend.
Oil prices were lower following the move by OPEC, a signal that growth concerns have overwhelmed expectations for lower supply.
"There is plenty of reason to be seeking shelter in gold."