$120 Oil Ahead?

The podcast analyzes the oil market's response to the escalating Iran conflict, with Jerome Dortmans, co-head of global oil and products trading at Goldman Sachs, providing insights. Despite the potential impact of up to 20 million barrels a day of crude oil being affected, the market's reaction has been subdued due to a history of geopolitical events not causing lasting disruption. However, Dortmans warns that if the supply constraints continue for another two to three days, oil prices could surge towards $100 a barrel, as OPEC's production capacity is limited and Iraq's storage is already full. Diesel and jet fuel markets are particularly vulnerable due to the Middle East's role as a major producer. He suggests that the U.S. may not be the first mover in addressing the issue, as China and India are now the most affected by oil shortages.