BMI Predicts Brent Crude Will Remain Above $100 for Months
Crude oil prices will remain quite high in the coming months, with Brent staying above $100 per barrel, as the U.S. and Iran remain distant on a potential agreement, Cedric Chehab, chief economist at BMI, told CNBC on Monday. A deal “could take several months yet,” Chehab told CNBC’s program Squawk Box Asia today, as Brent Crude prices traded at about $104 a barrel in Asian trade. BMI forecasts…
Crude oil prices, including Brent, are expected to remain above $100 per barrel for several months due to ongoing tensions between the United States and Iran, according to Cedric Chehab, chief economist at BMI. The potential for a U.S.-Iran deal to occur by the end of Q1 2027, Chehab explained on CNBC's Squawk Box Asia, is hindered by the time required for significant economic pressure to build on both sides.
The high oil prices are posing challenges for policymakers, as they continue to exert upward pressure on global inflation, inflation expectations, and monetary policy. Chehab also noted that the economic pressure on the U.S. economy is intensifying, prompting the Trump Administration to attempt to lower domestic fuel prices ahead of the midterm elections on November 3.
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