Oil Prices May Stay Elevated Until September, Could Hit $115/Barrel If U.S.–Iran Deal Collapses, Says Rapidan Energy

According to Rapidan Energy President Bob McNally, reported by Jin10 on June 15, oil prices are likely to remain elevated through the end of summer even if the Strait of Hormuz reopens soon. McNally warned that global oil market buffers, including U.S. strategic reserves, are depleting rapidly.

Data from the Energy Information Administration showed a 7.9 million barrel decrease in oil supplies from May 29 to June 5. If the U.S. and Iran fail to reach a lasting agreement, oil prices could surge to around $115 per barrel, and U.S. gasoline prices could reach a new high of $5 per gallon. McNally added that the current disruption has already resulted in over 1 billion barrels of lost oil supply.