BlockBeats News, March 12th, According to CNBC, the International Energy Agency (IEA) has sent a clear signal with its release of the largest-ever oil reserve plan: The energy market believes the duration of the Iran war may be much longer than expected.
Lipow, President of Lipow Oil Associates, said that some in the market interpreted the IEA’s action as indicating that the conflict could last for several weeks. Saul Kavonic, energy analyst at MST Marquee, also believes that the scale of this release highlights how severe the risk of an oil shortage is, indicating that the IEA does not expect this war to end soon.
Bob McNally, President of Rapidan Energy Group, said traders recognize that the release plan can only partially offset the shortages caused by the blockade of the Strait of Hormuz. Unless a ceasefire is achieved or Iran’s military capabilities decline to allow for a resumption of tanker shipments, oil prices may continue to rise.
