BofA: Strait of Hormuz Needs 10 Times More Ships to Stabilize Oil Markets

Source Summary

Bank of America warns that oil prices could continue rising into winter if the U.S. and Iran fail to reach an agreement reopening the Strait of Hormuz, with severe shortages already emerging in diesel, gasoline, and global natural gas markets. Francisco Blanch, BofA's head of commodities and derivatives research, stated the bank had expected Brent oil to trade in the $70 to $80 per barrel range assuming resolution, but prices could climb further without an agreement.