CNN Expert: Gas Prices Won't Drop Below $3 Again Until 2032

Gas prices are unlikely to fall to pre-Iran war levels before summertime. $3-per-gallon gas would require Brent crude oil to drop below $70 per barrel. Oil futures projections indicate that such pricing is not expected until around 2032. Restarting oil production in Iran is expected to take 2–4 weeks, but rebuilding damaged facilities and restoring manufacturing capacity will take much longer. The largest liquefied natural gas port is expected to take about two years to come back online. Additional delays are linked to undoing bottlenecks in the Strait of Hormuz. Brent crude was about $96.50 per barrel at the time mentioned.

"For gas to get below $3 per gallon in the U.S., Goldman said the price of Brent crude oil would have to drop below $70 per barrel. But he said there are a lot of roadblocks in the way of making that happen, even if President Donald Trump cuts a deal to end the Iran war in a matter of days. Goldman pointed to it taking 2-4 weeks just to restart oil production in Iran before saying it'll take a lot longer to build the country back up to its manufacturing ability before the war."

"Goldman pointed to it taking 2-4 weeks just to restart oil production in Iran before saying it'll take a lot longer to build the country back up to its manufacturing ability before the war. You need to fix your facilities ,because so much of them have blown up, literally, in the war, Goldman said. particularly the largest LNG port, the largest liquefied natural gas port in the world. That's going to take about two years to come back online. That's no joke."

"He then pointed at a chart showing Brent oil futures. Goldman said it is going to take a huge amount of time for those prices to hit pre-war prices, when a barrel was going for about $67 the day before Operation Epic Fury started in late February. Brent is trading for around $96.50 on Tuesday, up 0.20%. Goldman said that two year building period, coupled with the process of undoing the bottleneck in the Strait of Hormuz, has the oil market pegging 2032 as the next time oil prices will hit those levels again."

"I'm sorry, did I hear you correctly? Did you say 2032? Brown asked him. Goldman said that was unfortunately correct, based on what the oil futures market is predicting. You want $3 gas again? you're going to have to wait maybe six years, Goldman predicted during a Tuesday appearance on The Situation Room."

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