The U.S. has predicted when oil prices will peak — Reuters
Global oil prices are likely to peak within the next few weeks. This could happen once shipping through the Strait of Hormuz resumes.
According to the U.S. Secretary of Energy, this factor will be key to stabilizing the market and reaching a price ceiling.
This was reported with reference to U.S. Energy Secretary Chris Wright, as quoted by Reuters.
Speaking at the Semafor economic forum in Washington, Chris Wright noted that energy prices will remain high and may even rise until “real” volumes of ships begin passing through the strait. “We will see oil prices peak around that time. This will happen sometime in the next few weeks,” Wright said.
The official also reported an increase in oil production in Venezuela following Nicolás Maduro’s takeover and reforms to oil legislation. Since January 3, 150 million barrels of Venezuelan oil have been sold, and production has risen by 25%.
U.S. President Donald Trump previously stated that oil and gasoline prices could remain high until the November midterm elections. Since the start of the U.S. military operation, Iran has effectively closed the Strait of Hormuz to all vessels except its own. Tehran is attempting to make its control over the waterway permanent and, possibly, to charge a toll for passage.
In March, global oil refining volumes fell by 5 million barrels per day to 77.1 million bpd.
OPEC oil exports plummeted to a record low in March, according to Reuters.
As a reminder, oil prices remain above $100 following the resumption of Iraqi supplies.
Additionally, the price of oil could rise to $200 per barrel due to the war between the U.S. and Iran.
