Citibank: If the disruption in the Strait of Hormuz continues for another month, oil prices will reach $110.

Golden Finance News reported that on April 21, Citigroup said that if navigation through the Strait of Hormuz remains obstructed for another month, oil prices could rise to $110 per barrel. The company said that if this critical shipping route continues to be sealed off for the next four weeks, the global crude oil and refined product inventory losses caused by the United States’ war with Iran could potentially reach 1.3 billion barrels. The company said that even if a ceasefire extension agreement is signed this week and navigation through the strait, along with crude oil production, gradually resumes throughout May, the total global crude oil and refined product inventories are still expected to decrease by about 900 million barrels. This includes the 500 million barrels that have already been lost, as well as an additional 400 million barrels expected to be lost due to delayed ramp-up in production and conflict-related damage.

Citigroup also said that if the Strait of Hormuz is disrupted again for two more months, it could lead to losses of approximately 1.7 billion barrels and push oil prices up to $130 per barrel. However, Citigroup forecasts that even if the conflict ends this week, by the end of June, global crude oil and fuel inventories will still fall to their lowest level in eight years. The company said that rebuilding these inventories could still take more than two years, even if the market quickly recovers to a daily supply surplus of 1 million barrels after the conflict ends.