Hess CEO says oil is in the ‘intensive care unit’ — U.S., other nations need to act
Chief Executive Officer of Hess CorporationCNBC’s Tuesday interview with him revealed that he thinks the U.S. should do more to stabilize oil prices as the Russia-Ukraine conflict continues to affect energy markets.
John Hess stated that the oil market is now in intensive care and that action was needed. “Squawk Box,”Before media reportsPresident Obama was a candidate for the position. Joe BidenAs soon as Tuesday, the U.S. would ban Russian oil imports. Hess managed the company’s transformation from an integrated oil company into a pure-play exploration, production and management company.
International Energy Agency which also includes U.S. must declare a “release” of 120 million barrels out of the strategic petroleum reserve this month [and]Hess added that another 120 million barrels will be released by April. You basically put a buffer in the system by doing this.
Last week, the 31 members of the IEA said they would release 60 million barrels of oil from strategic petroleum reserves. Although Hess acknowledged that the decision was well-intentioned, Hess stated it was still too little and said “it is only about 4 percent of the global petroleum stock.”
Hess explained that “you need to keep in mind, and everyone does, that the IEA was founded to respond to shocks or oil disruptions following the Arab embargo by Henry Kissinger 1974.” Hess suggested, suggesting that this is the exact type of scenario the international organisation was designed to manage.
WTI crude oilInternational benchmarks have increased by approximately 70% in the past year. Brent crude oilIt has also risen by 70%. This week, futures contracts were opened for Brent and WTI. hit their highest levels since July 2008.
Hess stated that the United States and IEA must act fast to prevent an economic recession. Hess said, “They have to be proactive.”
Oil prices were trading Tuesday jumped to session highs As traders responded to the reports about an imminent U.S. crude import ban,
CNBC did not receive a response from the IEA to its request for comments on Hess’ remarks.