BofA: Hormuz Needs 10 Times More Ships to Stabilize Oil Markets

Bank of America (BoFA) is warning that oil prices could continue climbing into the winter if the U. S. and Iran fail to reach an agreement reopening the Strait of Hormuz, with severe shortages already emerging in diesel, gasoline and global natural gas markets.

“We’ve been expecting oil to be in the $70 to $80 a barrel range for Brent on the assumption that we were going to see some resolution,” Francisco Blanch, Bank of America’s head of commodities and derivatives research, told CNBC on Monday.