Oil prices are ripping higher, with Brent oil topping $122 per barrel and logging a sharp 20% weekly surge, according to economist Mohamed A. El-Erian, pointing to escalating Middle East tensions, shrinking global inventories and mounting Gulf supply risks as the key forces driving the rally.
He also warned that volatility may continue, and the rally in oil prices could extend further if those risks intensify.
Oil Spikes 20% In A Week
Erian, on Wednesday’s X post, said that Brent oil surpassed $122 per barrel, representing a “staggering 20% increase in just one week.”
Erian pointed out the three key drivers behind the latest spike, which are as follows:
Stalemate In The Middle East War
The first is “the stalemate in the Middle East War, with the balance of risk shifting toward escalation.”
Earlier on Wednesday, Donald Trump said the blockade would …
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