Reopening Strait of Hormuz key to cooling global oil prices: American Petroleum Institute CEO

Mike Sommers CEO American Petroleum Institute said that reopening the Strait of Hormuz is critical to stabilising global oil and gas prices amid the ongoing USIsraelIran conflict He highlighted the growing impact of supply disruptions on global energy marketsAccording to a news report by Politico Sommers said the White Houses most effective lever to control rising energy prices is to restore tanker movement through the key shipping routeThe truth of the matter is theres no replacement for the strait That is the critical piece that has to be done and done quickly Sommers said while speaking at the POLITICO Pub at CERAWeek by SampP GlobalHe added Otherwise youre going to continue to see rising prices across the country not just here in the United States but the real effect youre really seeing is in both Europe and Asia where a lot of this oil is flowingThe Strait of Hormuz through which about 20 per cent of the worlds oil production passes has remained closed since the outbreak of the war with Iran significantly disrupting global energy supply chainsSommers noted that the ongoing conflict has led to oil prices reaching their highest levels in years with several countries in Asia already facing shortages of diesel and jet fuelThe report also highlighted that the average price of gasoline in the United States stood at USD 397 per gallon on Tuesday according to AAADespite rising prices US oil and gas producers have not significantly increased output Sommers said producers are cautious due to the volatility in pricesWe dont know how long the prices are going to remain at this elevated level So I think youre going to see a muted response at this time he saidHe also described the conflict as part of a longstanding geopolitical issue dating back to 1979 when Iran held 66 Americans hostage and stressed the need for a lasting solutionSommers added that industry leaders want to ensure that Iran does not retain the ability to disrupt the strait in the futureI will also say if you talk to API member CEOs they also want to make sure that were finishing the job in Iran We cant leave Iran in a position where they can control the strait with any given drone that they shoot into the strait on any given day he saidThe report further noted that energy executives have emphasised the importance of stable energy supplies from multiple sources However reforms to streamline energy project approvals remain stalled in the US Congress due to political differencesSommers urged policymakers to adopt a balanced approach saying Our call is for everybody to put their weapons down This should be energy agnosticThe American Petroleum Institute is a sponsor of the POLITICO Pub at CERAweek by SampP GlobalThe ongoing crisis highlights the critical role of the Strait of Hormuz in global energy markets and the farreaching consequences of its disruptionThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever