After the Iranian facilities servicing an oil field in the Persian Gulf between Iran and Qatar were attacked, Haynes Boone Partner Jeff Nichols spoke with The Houston Business Journal to discuss the attack's impact on oil prices.
Earlier in the month, Nichols told the HBJ that the futures markets expected oil prices to drop in July after jumping to over $100 per barrel after the U.S. and Israel’s war with Iran started.
On March 19, Nichols told the HBJ those prices are now expected to remain high at least until fall.
“Now we're talking about supply destruction, where energy infrastructure may be offline for months or even years if this continues. And that would be a huge impact to prices,” Nichols said.
“This kind of market disruption has never happened.”
With oil prices now expected to remain high for months, Houston oil companies could face high profits on their domestic production.
Nichols said that if oil prices are $50 a barrel higher than they were before the war — which is nearly to where prices were peaking after the latest attacks — that’s an additional $650 million per day for the 13 million barrels of oil the U.S. produces daily.
To read more from The Houston Business Journal, click here.
