Why Energy Traders Expect Oil to Hit $100 per Barrel

Oil (CM:CL) prices could soon climb to $100 per barrel, according to several energy traders and executives who are closely watching the conflict in the Middle East. While prices have already risen sharply, some experts believe the market is still underestimating how serious the disruption could become. A major concern is the situation in the Strait of Hormuz, which is one of the most important shipping routes for global oil supplies. With ship traffic through the strait having largely stopped, oil tankers are struggling to move cargo, and the number of empty supertankers available in the Persian Gulf is quickly falling.

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Meanwhile, the disruption is already pushing energy prices higher across multiple markets. Indeed, Brent crude recently climbed above $90 per barrel, a gain of more than 25% in just one week. However, analysts say that the true impact of a prolonged Hormuz shutdown has not yet been fully reflected in prices. In addition to crude oil rising, refined fuels are seeing even sharper moves. For example, diesel prices have jumped more than 50% in a week, jet fuel has exceeded $200 per barrel in some regions, and European natural gas prices have surged by nearly two-thirds.

These increases are also starting to affect refinery operations, with some facilities in the Middle East and Asia already reducing output. Unsurprisingly, governments are trying to ease the situation, with U.S. President Donald Trump proposing to send naval escorts and provide insurance guarantees for ships passing through Hormuz. However, many shipping companies remain cautious because of safety concerns for their crews.

Which Energy Stock Is the Better Buy?

Turning to Wall Street, analysts think that SLB (SLB) stock has the most room to run. In fact, SLB’s average price target of $54.27 per share implies 15.2% upside potential, while most other stocks pictured below are expected to fall slightly. Nevertheless, it’s worth noting that energy stocks have already seen strong year-to-date gains, and the conflict in Iran could prompt analysts to rethink their price targets.

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