Shell's CEO Warns Oil Prices Will Keep Rising Despite Strait of Hormuz Talks

Shell's CEO Wael Sawan warned in June that oil prices would likely continue to rise after the disruption in the Strait of Hormuz ended. He believed it would take 'close to a year, if not longer,' for the oil market to find balance again.

However, oil prices have been trending lower recently amid talks between Iran and Oman over a deal to reopen the Strait of Hormuz, which is critical to the global oil market.

The real warning from Shell's CEO was not about near-term impact but rather the long-term story that could keep oil prices elevated. He stated at a conference in June that 'prices are going to move up...That's the story of five to 10 years.'

This is because 'all the easy oil and gas has been found,' making higher prices necessary to tap into resources that are currently uneconomic to develop.