The whole world is currently standing on the brink of a deep energy crisis. The war around Iran that started on February 28 has badly shaken the supply of crude oil globally. But on one hand, countries and common citizens around the world are scared of this crisis, on the other hand, this conflict is proving to be a huge economic boon for America’s oil producing companies.
The Strait of Hormuz, a vital sea route for global oil trade, has been hit hard by the recent conflict. This is the same route through which crude oil from many countries of the world passes. Blockage of this route simply means the prices of petrol and diesel going up like a rocket. Whenever petrol or freight becomes expensive, then every day-to-day item available in the market, be it vegetables or ration, becomes expensive.
‘Gold mine’ for American companies
On the global stage, one country’s crisis often brings business opportunities for another. Something similar is being seen this time too. This war related to Iran has given a serious blow to the global energy supply chain. But, this situation has opened the door to unprecedented profits for American oil companies. While the whole world is troubled by oil shortage and skyrocketing prices, American producers are taking full advantage of it. Their revenue is growing rapidly and they have converted this panic in the global market into a huge financial gain.
47 percent jump in oil prices
If we look at the figures, the seriousness of the situation can be easily estimated. Since the beginning of the war, a huge increase of about 47 percent has been recorded in the prices of crude oil. Only last week the international benchmark ‘Brent Crude’ crossed the psychological level of $ 100 per barrel. Along with this, the American standard ‘West Texas Intermediate’ (WTI) has also reached the level of $ 98.71 per barrel. According to a report in ‘Financial Times’, investment bank ‘Jefferies’ estimates that in the month of March alone, American oil producers could get additional cash flow of $5 billion due to the recent price increase.
$60 billion profit
This profit of companies is not going to stop here. If crude oil prices remain around $100 throughout this year, then experts estimate that American oil companies may make unexpected profits of more than $60 billion. According to the assessment of a research firm named ‘Rystad Energy’, if the average price of crude oil remains $ 100 per barrel in the year 2026, then additional cash of $ 63.4 billion can come into the coffers of American producers.