US EditionWill US Oil Companies Be the Big Winners From the Iran War?
Disruptions in the Strait of Hormuz removed 20% of global crude supply, pushing Brent oil prices above $85 and boosting Gulf Coast refiners' profits, analysts said.
- On Saturday, a US- and Israeli-launched attack on Iran triggered maritime strikes that hit tankers off Oman, including Skylight, causing the Strait of Hormuz shutdown and market surges.
- Because major outages take months to years to replace, analysts say the market faces constrained supply as QatarEnergy suspended LNG production, removing supply from stressed markets.
- As Again Capital's John Kilduff said, `Certainly, the producers get a benefit when prices go up like this`, LNG exporters with uncommitted capacity are benefiting, and ExxonMobil and Chevron reported over $30 billion in profits in Q3 2022.
- On Tuesday, President Donald Trump ordered the US navy to escort oil tankers and Washington to insure shipping, prompting a modest pullback in oil prices amid talk of tapping emergency stockpiles.
- Analysts expect the Permian Basin and US shale properties to attract capital first, but US oil companies will not increase drilling unless outages are prolonged, with Dan Pickering saying, `What US companies would need to see would be a sustained higher price.
37 Articles
37 Articles
Since the United States and Israel entered the war on Saturday against Iran, the first economic consequences are beginning to be felt, in particular with the rise of energy prices.
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Treasury Secretary Scott Bessent and Energy Secretary Chris Wright were scheduled to meet with Trump on Tuesday afternoon to discuss the matter.
Radio France Internationale
Will US oil companies be the big winners from the Iran war?
The Russian economy is under severe pressure. So are the country's public finances and thus its ability to wage war in Ukraine. Then Trump attacked Iran and sent oil prices skyrocketing.
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