Oil Prices Soaring, Threatening Global Economy

0:00On March 20th, Saudi officials are warning that crude oil prices could climb to $180 per barrel or even higher if supply. Disruptions from the Iran conflict are fixed by late April. That would push American gas prices above $7 a gallon based on current estimates. Brent crude has already jumped to around $119 per barrel amid attacks on energy sites in the Gulf. Prices have risen about 50 percent since fighting ramped up in late February with millions of barrels per day knocked off global supply. The straight-of-war moves, a vital shipping lane, is mostly shut down, forcing cuts and exports from Saudi Arabia, Iraq, Kuwait, and the UAE. Saudi Arabia is rerouting oil through its east-west pipeline to the Red Sea port of Yanbu, hitting a record 3.8 million barrels per day. This month, but that's still not enough to cover the gap. Traders and officials aren't edge about the fallout, even though higher prices mean more revenue for Saudi Arabia.

1:01They're worried about demand dropping off, a global recession, and shifts to other energy sources. Federal Reserve Chair, Jerome Powell says, sustained spikes would slow growth while fueling inflation, making it tough for central banks to respond. Attacks keep hitting refineries and processing plants, worsening shortages. Now natural gas is at risk too, with strikes on a huge liquefied natural gas facility in Qatar, threatening exports to Europe and Asia. Oil options markets show big bets on prices reaching $130, 140, or $150 soon. This energy crunch is raising alarms for a wider economic hit, as consumers might cut travel, work from home more, or switch fuels for good, reshaping. Demand in the years ahead.