Analyst: "Physical reality" dominates the surge in oil prices; Trump's verbal intervention has little effect.

ME News message, March 31 (UTC+8). Energy market consulting firm FGE NexantECA said that if the near-closure of the Strait of Hormuz caused by the Iran war continues over the next six to eight weeks, oil prices could surge to as high as $150 per barrel or even $200. The company’s honorary chairman, Fereidun Fesharaki, said Tuesday: “If 100 million barrels of oil can’t pass each week, then 400 million barrels can’t pass each month. Therefore, the losses the market suffers over a period of time will be astronomical.” Fesharaki expressed doubts about the effectiveness of Trump’s verbal intervention (including comments about a possible end to the conflict). He believes that what ultimately drives prices is the “physical reality” of supply disruptions. He said plainly: “As long as the Strait of Hormuz is closed in a physical sense, prices will rise naturally. No matter what Trump says at the political level, it won’t help.” (Jin 10) (Source: ODAILY)