August could mark a tipping point for much higher oil prices if demand rises and the Iran war supply crisis persists, an Abu Dhabi state oil company executive said on Tuesday, adding it could take a year for supply chains to recover even after flows normalize.
Transit through the Strait of Hormuz will remain partial and below pre-war levels as long as uncertainty over peace persists, Philippe Khoury, ADNOC’s executive vice president for sales and trading, told the Middle East Petroleum and Gas Conference in London.
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“It’s not going to resume like a flip of a switch,” Khoury said, adding that some elements of the supply chain would take weeks to restore and others months, with a full return to pre-war conditions potentially taking until mid-2027.
Not clear how much further demand can shrink, exec says
