Fuel prices at the pump are expected to decline within one to two months, according to John Catsimatidis, billionaire owner of United Refining Co. and New York supermarket chains. His assessment follows sharp increases driven by supply concerns stemming from the conflict between Israel and Iran, which has disrupted energy flows in the Middle East.
Catsimatidis, whose company operates a 70,000 barrel-per-day refinery in Pennsylvania, stated the worst of the price spike is over. “I believe prices will come back down in the next month, worst case scenario, two months,” he said in an interview with Reuters.
His comments coincide with oil prices rebounding above $100 per barrel. Brent crude rose over nine percent to $101.59, while West Texas Intermediate neared $96. The surge came as Iran threatened key shipping routes and global economic stability, overshadowing an unprecedented release of strategic reserves by the International Energy Agency (IEA). The IEA announced its member countries would release 400 million barrels of oil from stockpiles, including 172 million from the United States, the largest coordinated release in history.
However, market anxieties persist due to the near-complete shutdown of the Strait of Hormuz, through which approximately one-fifth of global seaborne crude oil passes. The ongoing military exchanges between Iran and U.S.-Israeli forces have heightened fears of a prolonged supply choke point.
Catsimatidis used the crisis to argue for increased investment in oil production and refining capacity. When asked about expanding his Warren, Pennsylvania refinery, he responded unequivocally, “Absolutely, yes.” He suggested the situation underscores a long-term need for more robust energy infrastructure.
The current volatility has also drawn attention to alternative supply sources. Nigeria’s Foreign Minister, Yusuf Tuggar, separately urged Gulf oil producers to view Nigeria as a partner for diversification. He highlighted Nigeria’s untapped reserves as a potential stabilizer for global markets when traditional flows are vulnerable, suggesting partnerships could help secure long-term energy security.
The convergence of geopolitical conflict, strategic stockpile releases, and calls for investment highlights the fragile state of global oil markets. Prices remain sensitive to developments in the Middle East, while industry leaders point to infrastructure investment and supply diversification as critical steps to mitigate future shocks. The situation continues to underscore the tight link between geopolitical stability and consumer energy costs worldwide.
