Shell’s CEO Warns That Oil Prices Will Continue Rising Long After the War Ends. Here’s What That Means for Oil Stocks.

5 hours ago 3

Matt DiLallo, The Motley Fool

Thu, June 11, 2026 astatine 12:04 PM CDT 5 min read

Oil prices person surged this twelvemonth amid the struggle with Iran. Brent oil, the planetary benchmark price, has risen much than 50%, jumping from astir $60 a tube to much than $90. On a affirmative note, Brent is presently good beneath its highest of astir $120 a barrel, reached successful the aboriginal days of the war. Crude has cooled disconnected amid hopes that the U.S. and Iran volition scope a bid woody that includes reopening the Strait of Hormuz.

Many radical extracurricular the lipid manufacture judge lipid prices volition diminution rapidly erstwhile the Strait reopens and stay debased successful the coming years. However, the CEO of planetary lipid elephantine Shell (NYSE:SHEL) has a antithetic view. He expects lipid prices to proceed rising agelong aft the warfare ends. Here's wherefore and what that means for oil stocks.

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An lipid drilling rig with the prima successful the background.

Image source: Getty Images.

Upside unit implicit the longer word

Shell's CEO, Wael Sawan, believes lipid and state prices volition support rising good aft the existent Middle East struggle ends. That's mostly owed to the anticipation that planetary lipid request volition proceed to grow. As a result, lipid companies volition request to proceed processing caller supplies to offset accumulation declines and depletions successful bequest lipid fields.

That poses a problem. Sawan told attendees astatine the Wall Street Journal Leadership Institute CEO Summit that portion the lipid manufacture tin presently conscionable planetary request (once the Strait reopens), it volition beryllium much challenging going forward. That's due to the fact that "all the casual lipid and state has been found." As a result, lipid companies volition request to prosecute resources that are presently uneconomic to research and develop. Prices volition request to emergence to marque it profitable to pat into the resources the system volition request successful the future. That drives his presumption that "prices are going to determination up, [which is] the communicative of 5 to 10 years [ahead]."

The value of exploration

Shell is already investing wealth to assistance enactment aboriginal request growth. The institution aims to adhd 1 cardinal barrels of lipid equivalent (BOE) per time to its output by 2030 done the commissioning of caller projects. Additionally, it's looking astatine aboriginal opportunities to grow its output. For example, the institution acquired acreage successful Angola and South Africa to research for caller resources. It's besides evaluating opportunities successful Kuwait and Venezuela. These investments volition alteration Shell to conscionable aboriginal planetary proviso needs and capitalize connected rising prices.

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