Global oil inventories are falling rapidly, leaving prices exposed to further gains if the Strait of Hormuz disruption continues.

The present tranquility will not last.

Global oil inventories are being depleted at a record pace as restricted Strait of Hormuz flows tighten physical markets and raise the risk of another price surge.

The agency believes the current crisis situation should not lead to fundamental changes in the oil market that would radically shift the balance of supply and demand

Citi forecasts Brent crude could spike to $150/bbl, with near-term prices hitting $120/bbl amid geopolitical tensions and supply risks.

Global oil inventories are falling rapidly, leaving prices exposed to further gains if the Strait of Hormuz disruption continues.

" ... implied oil price would be $208/bbl, and if the demand elasticity was 0.1 prices would approach $372/bbl."