AFP, London

Having once more soared beyond $110 per barrel on Thursday, could oil prices reach new records beyond $150 as some analysts believe? President Trump’s latest belligerent tone over the Middle East war has reignited concerns about persistently high crude costs and the limited measures available to tackle the fallout.

$200 OIL?

Since the start of the US-Israeli conflict with Iran, benchmark oil prices have soared more than 50 percent largely owing to the Strait of Hormuz -- through which normally one-fifth of the world’s crude passes -- shutting to most tankers.

French bank Societe Generale said $150 is a “credible” outcome on a prolonged war, while most analysts estimate crude hitting $130-$140. Australian bank Macquarie forecast $200 crude should the war still occur in June.

At around $110, consumers are already facing heavy financial pain, as prices of gasoline and diesel soar around the world.

‘INSUFFICIENT’ OIL RESERVES

In an unprecedented decision in response to the Mideast war, the 32 nations belonging to the International Energy Agency (IEA) pledged to unlock 426 million barrels, equivalent to more than one third of their combined reserves.

The United States, itself a major oil producer, is to release 172 million barrels, or 40 percent of its strategic reserves. These emergency releases “are not sufficient”, UBS commodities analyst Giovanni Staunovo told AFP, noting that the maximum pace of release is around three million barrels per day compared with 15 mpd failing to reach the market because of the war.

SOLUTIONS?

For countries dependent on oil and gas transiting through the Strait of Hormuz -- in particular those spread across Asia and Europe -- the situation appeared bleak.

In the short term, calls for energy-use moderation are multiplying, such as the European Commission’s request to member states to reduce their oil demand, or Bangladesh’s call for its civil servants to turn off lights and lower air conditioning.

Several countries, including Malaysia and Sri Lanka, are encouraging people to work from home if they are able to do so. “The reality is, the economic shocks caused by this war will be with us for months,” Australia’s Prime Minister Anthony Albanese warned on Wednesday.