RE: 'Oil Prices Could Hit $160 Within Weeks'31 May 2026 15:32
Industry heavyweights and energy economists are warning that the market may be facing a "rude awakening" heading into June and July.
Fragile Negotiations: The peace deal is not finalized. Setbacks—such as recent targeted US strikes on Iranian missile sites—instantly push Brent back toward the $100 mark.
The "Point of No Return" on Inventories: The conflict has pulled roughly 12 to 14 million barrels of oil a day off the market. To cover this shortfall, global emergency stockpiles have been drawn down at record speeds. Industry analysts warn that these buffers are critically low and emergency releases are expected to dry up by July.
Infrastructure & Restart Lag: Even if a peace treaty is signed tomorrow, oil won't just flood back. The UAE's state oil group (Adnoc) noted it will take at least four months just to restore 80% of pre-conflict flows due to necessary mine clearance and infrastructure repairs. Full capacity isn't expected until 2027.
Summer Demand: We are entering peak summer travel season, which naturally accelerates crude and fuel consumption, hitting a severely depleted supply chain.