Odd Lots: Rory Johnston on Why Oil Didn’t Hit $200 (Podcast)

Rory Johnston, founder of Commodity Context, explained on the Odd Lots podcast that oil prices did not reach the predicted $200 per barrel despite the conflict with Iran and the Strait of Hormuz's partial closure. Johnston had previously stated that a prolonged closure of the Strait would likely result in oil prices hitting $200. He discussed new insights gained since the initial conflict began, indicating that market dynamics and supply adjustments prevented the extreme price surge. The podcast episode, released this week, delves into the factors influencing crude oil markets beyond immediate geopolitical events. Johnston's analysis suggests that while tensions in the region impact prices, the global oil infrastructure and market responses mitigate the most severe price escalations. The conversation provided a detailed look at the complexities of oil pricing in a volatile geopolitical landscape.