Energy Specialist Explains Stability of Oil Prices Amid Iran Strike Concerns
Former Energy Secretary Dan Brouillette joins ‘Mornings with Maria’ to break down rising oil prices, escalating Iran tensions and what it means for U.S. energy security.
As concerns mount over a potential U.S. strike on Iran, which could disrupt global oil supplies and lead to soaring prices, former Energy Secretary Dan Brouillette emphasizes that strong American production is currently preventing a $100-a-barrel price shock.
Brouillette stated, “What we are not seeing is a lack of supply in the marketplace. That is traditionally what would drive prices higher. That is not the case today.” Instead, he attributes the recent price increase to traders anticipating that escalating tensions, particularly regarding Iran, could hinder oil shipments through the Strait of Hormuz, a critical waterway responsible for transporting approximately 20% of the world’s petroleum liquids.
He highlighted that oil is “plentiful” in the marketplace, thanks to the U.S. producing more than ever before. “We’re setting records, and that’s bringing stability to the marketplace,” he added. As a result, rather than facing $100-a-barrel oil, prices are hovering in the mid-60s.
At the time of the broadcast, crude oil was priced around $66.59 per barrel, following a recent spike driven by rising tensions with Iran. Brouillette anticipates that prices will stabilize in the coming weeks, as the current volatility is more about uncertainty than actual shortages. “This is really a risk price today. It is not a supply price,” he explained. “And I think we’re going to see that for some time to come.”
SCOTT BESSENT SAYS IRAN UNDERSTANDS ‘BRUTE FORCE’ AS TRUMP WEIGHS OPTIONS AMID NUCLEAR STANDOFF
Oil pumpjacks stand in the Inglewood Oil Field on Nov. 23, 2021 in Los Angeles, Calif. (Mario Tama/Getty Images / Getty Images)
Brouillette believes that with supply remaining robust, prices should stabilize rather than spike. “I think you will see them stabilize over a period of time,” he told Maria Bartiromo. “We’re looking at mid-‘60s today. It won’t surprise me that we see it go down slightly, especially if we have a situation in Iran where they return to what might be referred to as polite society.”
A shift in Iran’s stance or a broader political change that allows more Iranian crude back onto the global market could further alleviate pressure on prices. Brouillette noted, “If this regime goes away and that oil becomes available, we’re looking at potentially another million, million-and-a-half barrels of oil coming onto the world market.” He concluded that such a development could significantly alter the supply situation and potentially push prices lower.
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‘The Big Money Show’ discusses the impact of a possible U.S.-Iran war on oil prices.
Former Energy Secretary Dan Brouillette joins ‘Mornings with Maria’ to break down rising oil prices, escalating Iran tensions and what it means for U.S. energy security.
As concerns mount over a potential U.S. strike on Iran, which could disrupt global oil supplies and lead to soaring prices, former Energy Secretary Dan Brouillette emphasizes that strong American production is currently preventing a $100-a-barrel price shock.
Brouillette stated, “What we are not seeing is a lack of supply in the marketplace. That is traditionally what would drive prices higher. That is not the case today.” Instead, he attributes the recent price increase to traders anticipating that escalating tensions, particularly regarding Iran, could hinder oil shipments through the Strait of Hormuz, a critical waterway responsible for transporting approximately 20% of the world’s petroleum liquids.
He highlighted that oil is “plentiful” in the marketplace, thanks to the U.S. producing more than ever before. “We’re setting records, and that’s bringing stability to the marketplace,” he added. As a result, rather than facing $100-a-barrel oil, prices are hovering in the mid-60s.
At the time of the broadcast, crude oil was priced around $66.59 per barrel, following a recent spike driven by rising tensions with Iran. Brouillette anticipates that prices will stabilize in the coming weeks, as the current volatility is more about uncertainty than actual shortages. “This is really a risk price today. It is not a supply price,” he explained. “And I think we’re going to see that for some time to come.”
SCOTT BESSENT SAYS IRAN UNDERSTANDS ‘BRUTE FORCE’ AS TRUMP WEIGHS OPTIONS AMID NUCLEAR STANDOFF
Oil pumpjacks stand in the Inglewood Oil Field on Nov. 23, 2021 in Los Angeles, Calif. (Mario Tama/Getty Images / Getty Images)
Brouillette believes that with supply remaining robust, prices should stabilize rather than spike. “I think you will see them stabilize over a period of time,” he told Maria Bartiromo. “We’re looking at mid-‘60s today. It won’t surprise me that we see it go down slightly, especially if we have a situation in Iran where they return to what might be referred to as polite society.”
A shift in Iran’s stance or a broader political change that allows more Iranian crude back onto the global market could further alleviate pressure on prices. Brouillette noted, “If this regime goes away and that oil becomes available, we’re looking at potentially another million, million-and-a-half barrels of oil coming onto the world market.” He concluded that such a development could significantly alter the supply situation and potentially push prices lower.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
‘The Big Money Show’ discusses the impact of a possible U.S.-Iran war on oil prices.
