Why a research firm says oil is at a 'breaking point,' and prices aren't coming back down soon

(Business Insider) -snip- HFI Research, an investment research firm focused on energy and commodities, said it believes the oil market has reached a "breaking point" after two months of the Iran war, and that supply disruptions will be long-lasting.

Even if the US and Iran were to strike a deal this week, the market will be dealing with severe shortages and eventual demand destruction, thanks largely to the damage already inflicted on refining capacity, the firm said in a note on Sunday.

"The oil market breaking point is here. Global onshore oil inventories are going to plummet, and the decline will be at a pace no one has ever seen before," HFI wrote.

"If the Strait of Hormuz remains closed past April, no one will be able to tell you where oil prices top out. We will have gone too far into the Rubicon," the firm added.

https://finance.yahoo.com/sectors/energy/articles/why-research-firm-says-oil-142818834.html