If this keeps up, oil is going to $200. (Nope) … Gas will hit a record, too. (Wrong) … And after the Strait of Hormuz finally reopens, oil will return to pre-war prices next year – at the earliest (Survey says: ❌).
Oil industry analysts (and, ahem, at least one CNN journalist) are eating a lot of humble pie lately.
Despite the biggest oil supply shock in history, oil prices in recent months never approached their record set in 2008. Gas and diesel prices didn’t surpass their 2022 highs. And, as President Donald Trump predicted, oil prices have, in fact, fallen “like a rock” after the United States reached an agreement with Iran.
How were all the experts so wrong?
The oil supply shock was unprecedented, so history was no help. But good, old-fashioned capitalism turned out to be very helpful.
