New Delhi, May 22 -- Global oil markets are severely under-pricing supply duration and tail risks, with Brent crude prices poised to surge to USD 120 per barrel in the near term and potentially touch USD 150 per barrel under a bull case scenario, according to a research report by Citi. The ongoing geopolitical standoff over the Strait of Hormuz and emerging weather disruptions present substantial upside risks to global inflation over the next year.

"We remain bullish very near-term and see prices rising to USD 120/bbl in the base case (50% indicative), with the risks surrounding our price forecasts skewed to the upside. Our bull case scenario (multiple paths to get there) is for Brent prices to reach USD 150/bbl," the report stated.

The...