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

AI Summary

Bank of America warns that oil prices could rise further if an agreement to reopen the Strait of Hormuz between the U.S. and Iran is not reached. The report highlights severe shortages in diesel, gasoline, and global natural gas markets, suggesting increased shipping needs to stabilize oil market supply.

Bank of America (BoFA) is warning that oil prices could continue climbing into the 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. “We’ve been expecting oil to be in the $70 to $80 a barrel range for Brent on the assumption that we were going to see some resolution,” Francisco Blanch, Bank of America’s head of commodities and derivatives research, told CNBC on Monday. “But if we don’t,…