Macquarie: Even if the situation in the Middle East relaxes, the bottom of oil prices is still in the $85 - 90 range

Macquarie global energy strategist Vikas Dwivedi and his team said in the report that even if tensions may ease (specifically after Trump's statement on Monday), the bottom of oil prices is expected to remain at US$85 to US$90 per barrel, and will soon naturally rise back to the US$110 range until the Strait of Hormuz is fully restored to navigation.<br /> If the Strait of Hormuz continues to close, Brent oil prices may still rise to US$150 per barrel by the end of April, while refined oil prices are expected to be 200% higher than pre-war levels.<br /> The total amount of oil transported through the strait is expected to be 1.5 million barrels per day, far below the normal level of 15 million barrels per day, meaning a supply gap of 13.5 million barrels per day.