Economist and Echelon Wealth Partners co-founder Peter Schiff is warning that oil prices could climb significantly in the coming years, pointing to the Trump administration's drawdown of the Strategic Petroleum Reserve as a looming problem. In a post on X on Wednesday, Schiff argued that the SPR is being rapidly depleted to keep oil prices suppressed ahead of the midterms, leaving the U.S. with less protection against future supply shocks.
"Oil is over $95 per barrel," Schiff said, noting that the price is rising despite the administration's efforts. He then posed a question about the future: "Imagine how much higher oil prices will be by the general election in 2028, if the SPR has been empty for over a year."
Schiff also took aim at Trump's comments about the war in Iran ending "immediately" after the midterm elections, calling it Trump's latest lie.
Oil and Gas Prices
At the time of writing, West Texas Intermediate (WTI) futures ending in October were at $95.66, while Brent crude futures ending in November exceeded the $100 mark to $100.56. The United States Oil Fund (NYSE:USO) was down 1.16% to $148.23 during overnight trading on Wednesday.
On the gas and diesel front, data from the American Automobile Association (AAA) showed the national average price of gas was $4.2245/gallon on Wednesday, with diesel at $5.9424/gallon and premium gas at $5.1200/gallon.
Iran War
Amid escalating tensions, the Islamic Revolutionary Guard Corps (IRGC) claimed it had struck two U.S. vessels and targeted multiple tankers, after U.S. Central Command (CENTCOM) said it had struck Iranian government oil tankers in the region. However, CENTCOM denied the IRGC's claim, saying none of its vessels had been struck.
The administration had earlier reportedly adopted a "tanker for tanker" policy against Iran, saying it will deter Iranian strikes on vessels in the Strait of Hormuz.
