Peter Beutel, president of Cameron Hanover, told CNBC’s “Power Lunch” that an agreement to release captured British sailors doesn’t yet remove the “Iranian premium” on the price of crude oil.
“I’d say that we added about $6 during the run-up,” Beutel said Wednesday. “So, (the premium) is not out yet. Even though we’ve solved this problem, the larger problem remains – (Iran’s) nuclear issue. Iran and the West seem to be on a collision course long-term.”
He said he expects the price of oil to climb through mid-May. It’s unlikely that prices will surpass $78.40 a barrel, last year’s high, and prices then will gradually decline, perhaps into the $50-a-barrel range, he said.