$120 Oil Ahead?

The discussion centers on the recent increase in oil prices following the Iran conflict and its potential impacts on the global oil market. Jerome Dortmans, co-head of global oil and products trading at Goldman Sachs, suggests the market's response has been subdued despite significant barrels being affected, estimating that up to 20 million barrels a day of crude oil production is at risk. He notes that while alternative pipelines exist, their continued operation is uncertain due to previous attacks, and warns that current stock levels could be rapidly depleted if the disruption persists. Dortmans believes that if the situation continues to escalate, oil prices could reach $100 to $120 a barrel, with diesel and jet fuel being the most impacted products due to the Middle East's role as a major producer.