The war with Iran has brought shipping traffic to a virtual standstill in the Strait of Hormuz, the narrow Persian Gulf channel through which roughly one-fifth of the world’s oil and gas flows. That has sent fossil fuel prices surging — and with them, the potential for profit.
The price of Brent crude, the global oil benchmark, is up more than 10 percent since the conflict started almost a week ago, and natural gas prices in some places, especially Europe, have doubled. U.S. consumers are already feeling the effects, with gasoline around 27 cents per gallon higher than before the war. But industry analysts say that, at least in the short-term, higher prices could be a windfall for producers that aren’t dependent on Persian Gulf supplies, such as Exxon Mobil, Chevron, Shell, and the French company Total.
“If you are operating, if you’re producing, and you’re going to enjoy higher prices for your product, you are going to benefit,” said Abhi Rajendran, who leads oil market research at the analysis firm Energy Intelligence and is a fellow at R... Read more
