Oil Price Forecast - Sept 14

[dan_s]

“This is a big deal,” said Andrew Lipow, president of Lipow Oil Associates. “Fearing the worst, I expect that the market will open up $5 to $10 per barrel on Sunday evening.”

“If Abqaiq kills talks of easing sanctions and the discussion turns to retaliation and escalation, I think oil could easily trade higher by $10 or more,” said Bob McNally, president at Rapidan Energy Group.

Read more: https://www.cnbc.com/2019/09/14/oil-cou ... utput.html

Based on the footage that I've seen, the damage to the largest oil processing facility on earth is extensive. It won't be fixed in a few weeks.

MY TAKE: If they pin the attacks directly on Iran there will be retaliation. If that happens we might see Brent spike to $75/bbl and WTI to $70/bbl. Regardless, I cannot see the U.S. lifting the sanctions against Iran and I can see us telling the rest of the world that we will come down hard on anyone that does business with Iran.