Diamondback Energy CEO: Iran conflict caused largest oil supply shock, structurally raising oil price floor and complicating Fed rate cuts
Diamondback Energy CEO Kaes Van't Hof stated that the Iran conflict led to the largest oil supply shock in history, cutting global production by 13.6 million barrels per day and rapidly draining inventories. He argues that the required rebuilding of these depleted global inventories has structurally raised the oil price floor compared to pre-conflict levels, keeping gasoline prices above $4 per gallon and making it harder for the Federal Reserve to cut interest rates. The company also reported strong Q2 earnings, with revenue of $5.56 billion and free cash flow of $2.33 billion, both beating Wall Street estimates, and raised its full-year production guidance.
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