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Odd Lots · June 26, 2026 · 32m

Rory Johnston on Why His $200 Oil Prediction Didn't Turn Out Right

Rory Johnston, founder of Commodity Context, revisits his earlier prediction that a prolonged closure of the Strait of Hormuz amid the Iran conflict would send oil to $200 a barrel. With the strait mostly reopened and prices only modestly elevated, he explains the key factors that kept a lid on markets: re-routing of shipments, jawboning from the Trump administration, and most importantly a surprise drop in Chinese imports. The conversation reveals how demand-side adjustments and logistical flexibility can offset even major supply disruptions.

This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.

Highlights

Why $200 Oil Didn't Happen Despite Strait of Hormuz Closure
Despite the Strait of Hormuz disruption during the Iran conflict, oil prices never reached the predicted $200 a barrel, and Rory Johnston explains the specific factors that capped them.
The Role of Trump Jawboning in Oil Prices
Political pressure from the Trump administration helped keep oil prices in check during the crisis.
China's Surprise Import Reductions as a Demand Shock
Unexpectedly lower imports from China significantly reduced global oil demand, easing upward pressure on prices.
Re-routing as a Mitigation for Strait Disruption
Some oil flows were re-routed around the Strait of Hormuz, softening the supply shock.

Misc

Return appearance after earlier prediction of $200 oil at the start of the Iran conflict.
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