Oil Market Faces Prolonged 'War Hangover' Amid US-Iran Deal, Says Ninety One's Gooden
Oil prices recently stabilized following their largest decline in over two weeks, as global markets await specific details of an anticipated US-Iran agreement. This prospective deal aims to facilitate the reopening of the crucial Strait of Hormuz. Paul Gooden, Head of Natural Resources at Ninety One, commented on the future, suggesting the oil market will experience a 'war hangover' for several years.
Oil prices have seen a period of stabilization recently, following their most significant drop in more than two weeks. This market development comes as global financial markets intently await the release of specific details concerning a forthcoming deal between the United States and Iran.
The proposed agreement is centered on the intention to reopen the Strait of Hormuz, a vital maritime chokepoint for global oil shipments and trade. The reopening is a key point of interest for market participants and analysts.
Paul Gooden, who serves as the Head of Natural Resources at Ninety One, provided his perspective on the situation. Speaking on how soon the flow of oil might normalize, Gooden indicated that the oil sector is likely to contend with a "war hangover" for an extended period, potentially lasting several years. His remarks suggest a prolonged impact or adjustment phase for the market.
Gooden's insights were shared during an interview with Bloomberg’s Abeer Abu Omar on the program Horizons Middle East & Africa.
(Source: Bloomberg Markets)
