Crude oil prices will remain above $95 for the next two months: Trump administration estimates

Turbulence in global energy markets has intensified amid the ongoing military conflict over Iran and rising tensions in West Asia. The US Energy Information Administration (EIA) in its latest short-term energy outlook has estimated that the price of crude oil could remain above $ 95 per barrel for the coming two months.

According to the report, the price of crude oil is likely to remain above $95 for the next two months, after which it may fall below $80 in the third quarter and is expected to reach around $70 per barrel by the end of the year.

This boom in the oil market has come due to the ongoing war between America, Israel and Iran. According to reports, several oil producing countries have announced production cuts after Iran’s attacks on oil and gas sites in West Asia, raising concerns about global supply.

The situation has been made more serious by the fear of closure of the Strait of Hormuz. This strait is considered very important for about 20 to 25 percent of the world’s oil and gas trade via sea route. Due to its impact, pressure on global energy security has increased.

Before the conflict, the price of crude oil was around $72.48 per barrel, but it reached $119.50 on Monday as tensions escalated. Later the price softened slightly to $98.96 and closed at $87.80 per barrel on Tuesday. This was the first time since 2022 that the price of oil crossed $100. At that time, there was a big boom in the energy market after Russia’s conflict with Ukraine.

According to EIA, if the Strait of Hormuz reopens, the situation may gradually return to normal in the coming weeks. The report also said that due to production cuts in major producing countries like Saudi Arabia, Iraq, Kuwait, Qatar and United Arab Emirates, there is pressure on supply at present.

However, the agency believes that the impact of this crisis will be limited on America. According to the report, due to higher prices, oil production in America is likely to increase, due to which domestic supply can remain balanced.

Apart from this, it has also been estimated that the prices of natural gas in America will remain relatively stable and it may be about 13 percent less than last month’s estimate.

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