Energy
Wednesday, October 11th, 2023 2:08 pm EDT
Key Points
- Oil Price Concerns with Iranian Involvement: CEO Scott Sheffield of Pioneer Natural Resources has raised concerns that oil prices could significantly rise if Iran becomes involved in the conflict between Hamas and Israel. He emphasized that Iran’s participation would likely lead to much higher oil prices, given its role as a major oil producer and its support for Hamas, which the U.S. designates as a terrorist organization. The potential for a broader conflict poses a significant threat to global crude supplies, particularly considering recent production cuts by Saudi Arabia and Russia.
- Oil Price Movements: Brent crude was slightly lower, trading at $86.93 a barrel, while U.S. West Texas Intermediate (WTI) crude fell to $85.19. The article notes that both Brent and WTI had previously surged by over $3.50 on Monday due to concerns that the conflict between Israel and Hamas might escalate into a larger, more widespread conflict.
- Uncertainty and Diplomacy: Scott Sheffield highlighted that the response to Iran’s potential involvement in the conflict would depend on Israeli Prime Minister Benjamin Netanyahu and the evidence linking Iran to the situation. U.S. Secretary of State Antony Blinken, set to visit Israel, mentioned that it is not clear whether Iran has been involved in the ongoing hostilities.
Pioneer Natural Resources CEO Scott Sheffield has expressed concerns that oil prices could significantly rise if Iran becomes involved in the conflict between Hamas and Israel. He emphasized that if Iran enters the war, it would lead to much higher oil prices due to its status as a major oil producer and its support for Hamas. Iran’s involvement in a broader conflict could pose a substantial threat to global crude supplies, especially considering recent production cuts by Saudi Arabia and Russia.
Brent crude traded slightly lower at $86.93 a barrel, while U.S. West Texas Intermediate (WTI) crude fell to $85.19. Oil prices had initially surged more than $3.50 on Monday due to concerns about the escalating conflict between Israel and Hamas.
Sheffield also noted that the response to Iran’s potential involvement would depend on Israeli Prime Minister Benjamin Netanyahu and the evidence of Iran’s role in the conflict. U.S. Secretary of State Antony Blinken, who is set to visit Israel, mentioned that it is not clear whether Iran has had any involvement in the ongoing hostilities.
The article also mentions Exxon Mobil’s agreement to acquire Pioneer Natural Resources in a $59.5 billion all-stock deal.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/11/pioneer-natural-resources-scott-sheffield-says-oil-prices-could-surge-if-iran-enters-the-war.html
