With the United States and Iran set to sign an agreement that could completely reopen the Strait of Hormuz to oil tankers, Canadians may still not see energy prices meaningfully fall any time soon.
A memorandum of understanding (MOU) between Iran and the United States, to be officially signed on June 19, is set to reopen the Strait, a waterway through which around 20 percent of global oil and gas supplies run. Tehran has severely disrupted the flow of ships through the Strait since March.
But this deal may not provide immediate substantial relief for Canadians at the pump, according to Canadians for Affordable Energy President Dan McTeague, who says it will take six or seven months to replenish global oil inventories that have already been drawn down to critical levels….