Brent crude climbs to $94 as analysts expect oil prices to stay in $90–100 range

Brent crude prices climbed to a five-week high of around $94 per barrel on Wednesday amid escalating geopolitical tensions between the United States and Iran, prompting analysts to caution that while short-term volatility may persist, oil is likely to remain largely within the $90–100 per barrel range.

At the time of reporting, Brent crude was trading at around $94.12 per barrel, while WTI crude stood at approximately $87.38 per barrel.

The recent rally has been driven by heightened geopolitical concerns in the Middle East, relatively tight production levels maintained by OPEC+, and fears of potential disruptions to global energy supplies.

Analysts said oil markets are reflecting elevated geopolitical risks, tight OPEC+ supply, and the possibility of further disruptions to global energy flows. However, current price levels do not indicate that markets are fully pricing in a major, structural supply shock.

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Market experts believe geopolitical developments could continue to trigger intermittent spikes in crude prices. However, unless there is a significant escalation that materially disrupts global production or shipping routes, Brent is expected to trade largely within the $90–100 per barrel range rather than witnessing a sustained rally towards $112 per barrel.

For India, which imports more than 85 per cent of its crude oil requirements, elevated crude prices could increase the country's import bill, add to inflationary pressures, and widen the current account deficit if higher prices persist.

Market participants will closely monitor developments in the Middle East, OPEC+ production decisions, and global demand trends for further direction in crude oil prices.