US Energy Chief Says ‘Fear Premium’ in Oil Markets to Dissipate

an8rf6lp63xmus3rms4p4np)_media_dl_1.png JPMorganArticle content(Bloomberg) — US Energy Secretary Chris Wright said global energy supplies are sufficient and the war-linked surge in oil prices reflects a “fear premium” in markets that won’t last.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentWright joined President Donald Trump in arguing that the US-Israeli war with Iran will only temporarily disrupt of markets and ship traffic, saying the timeline “in the worst case” is a matter of weeks, rather than months.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“The oil is there,” Wright said Sunday on CNN’s State of the Union. “You’re seeing a little bit of fear premium in the marketplace. But the world is not short of oil today or natural gas.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentWith midterm elections ahead in November, Trump is courting political risk with the attack on Iran — which has prompted Iranian retaliation on US allies in the Persian Gulf — virtually halted tanker traffic through the Hormuz strait and pushed up gasoline prices for Americans.Article contentWhile Wright cited a tanker that “went through the Gulf about 24 hours ago,” Hormuz transit remained near a standstill for a sixth day with only Iran-linked tankers making the crossing over the past 24 hours.Article contentThe Trump administration has announced a $20 billion reinsurance program and suggested Navy escorts in a bid to revive traffic, though Wright suggested the US is focused on airstrikes on Iran for now.Article content“We’re nowhere near normal traffic right now,” he said. “And you know in that that’ll take some time. But again, worst case, that’s a few weeks, that’s not months.”Article contentHORMUZ TRACKER: Iran-Linked Ships Transit as Others Stay AwayArticle contentArticle contentWright acknowledged the impact on US retail fuel prices, which have increased by almost 16% in a week to $3.45 for regular gasoline, according to the American Automobile Association’s national average.Article content“We want it back below $3 a gallon, and it will be again before too long,” Wright said.Article contentWright echoed Trump in citing US reports of progress in destroying most of Iran’s missile and drone capability, though he said only Israel is attacking Iranian oil or gas infrastructure. Article content“There are no plans to target Iran’s oil industry, their natural gas industry, or anything about their energy industry,” he said. “And these are Israeli strikes. These are local fuel depots to fill up the gas tank, you know, in this neighborhood in Tehran.Article contentTrending U.S. aluminum buyers hunt for alternatives as Iran war upends global supply Commodities Bank of Canada governor warns of growing risks to financial stability Economy This TSX stock fought its way back from the AI software rout and may have 'strong growth prospects' Investor Beer, wine sales fall even more, putting tax revenues on the rocks, but one boozy drink is on the rise Retail & Marketing South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. U.S. aluminum buyers hunt for alternatives as Iran war upends global supply Commodities Bank of Canada governor warns of growing risks to financial stability Economy This TSX stock fought its way back from the AI software rout and may have 'strong growth prospects' Investor Beer, wine sales fall even more, putting tax revenues on the rocks, but one boozy drink is on the rise Retail & Marketing South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits Oil & Gas