Middle East Tensions Drive Oil Prices to $110 Amid Inventory Build and Red Sea Conflict

Traders are speculating on oil prices reaching $110 per barrel as tensions escalate in the Middle East, with bets equivalent to around 30 million barrels placed on Brent Crude hitting this mark by spring. The conflict in the region, particularly in the Red Sea, has raised concerns about potential supply disruptions. However, analysts believe that a major escalation is unlikely, citing factors such as rising American oil production and subdued global economic growth. Despite the speculation, the consensus forecast for 2024 suggests that oil prices are unlikely to exceed $80 per barrel on average.