Oil Prices Surpass $100 as Iran War Disrupts Supply, Analyst Says
8 reported
Oil prices surpassed $100 a barrel last week, and national gasoline prices climbed above $4 a gallon, according to an NPR interview with Bob McNally, founder of Rapidan Energy Group. McNally, a former energy adviser in the George W. Bush administration, said the Iran war is disrupting oil supplies and that the market had been prematurely optimistic about the conflict ending. He noted that crude oil prices had fallen earlier due to trader optimism and China cutting its oil imports in half, but those factors are now changing. McNally stated that the United States, Iran, and Israel are locked in a structurally prone escalation dynamic, and he expects oil prices to trend higher as long as the conflict continues. He also said that strategic petroleum stocks are down to 1983 levels and that the U.S. is out of slack in its production and export capacity. McNally did not rule out record gasoline prices, though he said that is not his base case.
What’s reported
Oil prices surpassed $100 a barrel last week.
National gasoline prices climbed above $4 a gallon.
Bob McNally, founder of Rapidan Energy Group and former energy adviser in the George W. Bush administration, provided analysis.
McNally said crude oil markets had been prematurely optimistic about the Iran war ending.
China cut its oil imports in half, which helped keep prices contained.
Strategic petroleum stocks are down to 1983 levels.
McNally said the U.S. is out of slack in production and export capacity.
He said crude oil prices are headed higher and did not rule out record gasoline prices.
Key figures
Bob McNally, founder of Rapidan Energy Group, former energy adviser in the George W. Bush administration.
Ayesha Rascoe, NPR host.
Sources: NPR
