Gooden: Oil Will Live with War Hangover for Several Years

Oil prices stabilized this week following a significant decline, the largest in over two weeks, as global markets anticipate further information regarding a potential US-Iran agreement. This deal is intended to facilitate the reopening of the Strait of Hormuz, a critical chokepoint for global oil transportation. Paul Gooden, Head of Natural Resources at Ninety One, discussed the potential timeline for the normalization of oil flows with Bloomberg's Abeer Abu Omar on the program Horizons Middle East & Africa. Gooden indicated that the oil market could experience lingering effects from geopolitical tensions and supply disruptions for several years. He suggested that the market's recovery and the return to pre-conflict supply levels would not be an immediate process, implying a prolonged period of adjustment and potential volatility. The ongoing geopolitical situation, particularly in the Middle East, continues to be a primary driver of price fluctuations and supply concerns within the international oil market. Investors and analysts are closely monitoring diplomatic efforts and their potential impact on crude oil production and distribution channels.