Top oil analyst guarantees that the next few months ‘will be an ongoing, absolute disaster’ even if the Strait of Hormuz opens tomorrow |
Top oil analyst guarantees that the next few months ‘will be an ongoing, absolute disaster’ even if the Strait of Hormuz opens tomorrow
Energy experts have been warning oil futures have been totally disconnected from the reality that exists in the physical market, but a reckoning is unavoidable and imminent, according to a top oil analyst.
Futures markets have been soothed by hopes of peace talks between the U.S. and Iran. West Texas Intermediate remains below $100 a barrel for now, though Brent crude is back above that threshold. Meanwhile, stocks have been hitting record highs as investors look past the war.
But Paul Sankey, president of Sankey Research, pointed out pre-war oil shipments via tankers from the Persian Gulf have only now reached their destinations. So with the Strait of Hormuz largely closed off for more than 40 days, the lack of new supplies can no longer be ignored.
“Over the coming months, this is going to unfortunately deteriorate badly,” he told Bloomberg TV on........