Oil prices could surge further as Iran war triggers ‘the worst energy crisis in modern history’

Energy experts are warning that the ongoing conflict involving Iran has triggered what some describe as the most severe global oil crisis in decades.

Eric Nuttall, senior portfolio manager at Canadian investment firm Ninepoint Partners, told CTV News the shutdown of the Strait of Hormuz has severely disrupted global oil supplies.

“We have forfeited about 700 million barrels to date. Even if the Strait were to open up tomorrow, we would lose 1.5 billion barrels at a minimum of forfeited production as a massive, massive, gaping hole”, he said.

About one-fifth of the world’s oil supply passes through the Strait of Hormuz. Nuttall said Middle Eastern oil production has already fallen by up to 14 million barrels a day.

He warned that prices may need to rise sharply to reduce demand, with West Texas Intermediate crude potentially climbing above US$170 per barrel.

“Quite simply put, oil needs to get too expensive for many people on planet Earth to use over the short term,” he said.

Meanwhile, some Canadian energy experts in Alberta are calling for faster development of Canadian energy projects as governments continue debating emissions reduction plans and energy security strategies.

Officials in Ottawa and Alberta say negotiations over major carbon capture projects are ongoing as fuel costs continue climbing globally.