Washington, United States. US Energy Secretary Chris Wright said oil prices are unlikely to reach $200 a barrel, even as crude tankers remained stalled in the Strait of Hormuz and two vessels burned at an Iraqi port after suspected Iranian drone boat attacks.
Wright comments on price risks and military focus
Wright told CNN that $200 a barrel was unlikely when asked about the threshold, which an Iranian official had warned was possible if the war continues to escalate. He said the focus was on the military operation and solving a problem.
Iranian statement links prices to regional security
Ebrahim Zolfaqari, spokesperson for Tehran’s Khatam al-Anbiya military command headquarters, said oil prices depended on regional security that the US and Israel had “destabilised.”
Oil rises after Iraqi port attacks despite reserve drawdown plan
Oil prices rose 6% to nearly $100 a barrel on Thursday following the Iraqi port attacks. The increase came despite more than 30 countries in the International Energy Agency announcing the largest-ever coordinated drawdown of global oil reserves of 400 million barrels, about 40% of which will come from the United States.
IEA cites historic supply disruption
The IEA said on Thursday the war had forced Middle East Gulf countries to cut total oil production by at least 10 million barrels per day, about 10% of global demand, marking the biggest oil supply disruption in the history of the global market.
US Navy escort capability in Strait of Hormuz
Wright told CNBC the US Navy could not currently escort ships through the Strait of Hormuz, but said it was “quite likely” such escorts could begin by the end of the month.
How do you think continued disruption in the Strait of Hormuz could affect energy prices in the coming weeks?
