Shell’s CEO Warns That Oil Prices Will Continue Rising Long After the War Ends. Here’s What That Means for Oil Stocks.
Shell's CEO believes oil prices will rise over the long term.
Shell’s CEO Warns That Oil Prices Will Continue Rising Long After the War Ends. Here’s What That Means for Oil Stocks.
Overview
Oil prices have surged this year amid the conflict with Iran. Brent oil, the global benchmark price, has risen more than 50%, jumping from around $60 a barrel to more than $90. On a positive note, Brent is currently well below its peak of nearly $120 a barrel, reached in the early days of the war. Crude has cooled off amid hopes that the U.S. and Iran will reach a peace deal that includes reopening the Strait of Hormuz.
Many people outside the oil industry believe oil prices will decline rapidly once the Strait reopens and remain low in the coming years. However, the CEO of global oil giant Shell (NYSE:SHEL) has a different view. He expects oil prices to continue rising long after the war ends. Here’s why and what that means for oil stocks.
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Originally published at www.fool.com.
