John Catsimatidis, chairman and CEO of United Refining, gives his oil projection on the Middle East ceasefire and Zohran Mamdani’s run as mayor of New York in ‘Varney & Co.’
A small number of tankers are beginning to transit the Strait of Hormuz, United Refining CEO John Catsimatidis said Wednesday, signaling a cautious restart at the critical oil choke point.
Under normal conditions, Catsimatidis says, as many as 100 tankers pass through the narrow waterway every day, making the flow a fraction of typical traffic.
Reports suggest soDespite the ceasefire, many ships remain stuck or cautiously transiting the Strait amid ongoing security concerns.
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Tankers are seen at the Khor Fakkan Container Terminal, the only natural deep-sea port in the region and one of the most important container ports in the Sharjah Emirate, along the Strait of Hormuz, a waterway through which a fifth of global oil production passes (Giuseppe Cacace/AFP via Getty Images/Getty Images)
Catsimatidis said the limited movement reflects what he described as ships having to seek permission from authorities before transiting the Strait.
The comments come amid a slump in oil prices after the market reacted to a bilateral ceasefire between the US and Iran on Wednesday.
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John Catsimatidis attends the New York Society for the Prevention of Cruelty to Children’s 2021 Fall Gala at the Stavros Niarchos Foundation Library on November 17, 2021 in New York City. (Jared Siskin/Patrick McMullan via Getty Images/Getty Images)
The ceasefire, announced on Tuesday, calls for the reopening of the Strait of Hormuz – a step seen as crucial to stabilizing global oil flows and easing pressure on high energy prices.
Catsimatidis predicted that oil prices could continue to fall if stability continues in the coming weeks.
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President of Payne Capital Management, Ryan Payne, joins ‘Mornings with Maria’ to analyze the stock market’s bullish rise.
“At the time we unwound something, it was down $20 a barrel and right now we are still in a risk period,” he explained.
‘Let’s see what happens in the next two weeks. Once that risk period is over, the oil price will drop another $20 per barrel. It will be closer to the $65 a barrel we had before the war, and that all depends on the free flow of oil through the Strait of Hormuz.”
