Eric Nuttall, Senior Partner at Ninepoint Partners: “This Is the Largest Energy Crisis in History” — Expects Oil Above $150 in Coming Weeks

Energy News Beat

In a sobering Bloomberg TV interview highlighted in a widely shared X post today, Eric Nuttall — Partner and Senior Portfolio Manager at Ninepoint Partners — warned that the world is experiencing the biggest energy crisis any living person has ever seen. With Middle East oil production slashed by approximately 14 million barrels per day (bpd) due to the ongoing closure of the Strait of Hormuz amid the Iran conflict, global inventories are plunging toward record lows, and Nuttall predicts oil prices will surge well above $150 per barrel in the coming days or weeks to ration demand.

The X post by @Mark4XX (posted May 2, 2026) summarizes Nuttall’s key points from the interview and includes the full video clip. Nuttall, who has over 25 years in energy markets, stated he went 100% oil-weighted in his fund back in January — and it is already up 44%. He described the current disruption as unprecedented, far beyond anything experienced in recent decades, including the COVID-era shocks.

The Unprecedented Supply Shock

According to Nuttall:

Middle East production is down a staggering 14 million bpd.
The world has already lost roughly 650 million barrels of production.
Even if the Strait of Hormuz reopened tomorrow, cumulative losses would climb to 1.5 billion barrels due to the backlog and time required to restart flows.
The last pre-closure tankers have now unloaded, eliminating the final safety buffer.

Cross-check: Multiple independent sources corroborate the scale of the disruption. The Strait of Hormuz — through which roughly 20% of global seaborne oil normally flows — has seen vessel traffic drop dramatically since the escalation of the Iran conflict in late February 2026. IEA’s April 2026 Oil Market Report noted global observed inventories fell by 85 million barrels (mb) in March alone, with a sharp 205 mb draw outside the Middle East Gulf. Production shut-ins have been estimated between 10–14 million bpd across reports, aligning closely with Nuttall’s figures.

Oil Exports

Inventory Collapse Accelerating

Nuttall highlighted:U.S. diesel stocks fell 4% in a single week; gasoline dropped 3% outside of peak driving season.
Global oil inventories are on track to hit all-time record lows by the end of May.

Cross-check: U.S. Energy Information Administration (EIA) Weekly Petroleum Status Report (data through April 24, 2026) confirms aggressive draws: gasoline stocks fell 6.1 million barrels (to 222.3 mb), and distillates (including diesel) dropped 4.5 million barrels (to 103.6 mb) in the latest reported week — the 11th straight week of gasoline draws. These align directionally with Nuttall’s cited percentages. The IEA similarly warns of continued sharp draws into April/May, pushing inventories toward multi-year or record lows.

Why $150+ Oil Is Coming — And SoonNuttall emphasized that price is the only mechanism left to ration demand more severely than during COVID. Physical markets are already signaling extreme tightness. He expects oil “well in excess of $150 per barrel in the coming days or weeks.

”Cross-check: As of May 1–2, 2026, Brent crude is trading around $108–116/bbl (with intraday volatility), already up dramatically since pre-conflict levels. Analysts and Nuttall’s own prior interviews (April 2026) have consistently flagged $150+ as the level needed for meaningful demand destruction amid the persistent supply gap.

Post-Crisis Outlook

Even after the Strait reopens, Nuttall sees a new higher floor:$80 oil as a base case.
Demand could surge 40% from restocking depleted inventories and strategic petroleum reserves (SPRs).

He views the current environment as creating a multi-year opportunity for energy equities, particularly Canadian producers.

Market Reaction and Broader Implications

Nuttall’s comments come as the market has shown some complacency despite physical realities. Energy stocks (e.g., TSX Energy Index) have performed strongly year-to-date, but he argues the full impact of the supply shock is still not priced in.

The crisis is already rippling through economies: higher input costs for households, businesses, mining, and manufacturing; potential inflation pressures; and risks to global growth if the disruption lingers.

Energy News Beat Takeaway: Eric Nuttall’s analysis is grounded in decades of experience and aligns with the latest data from the IEA, EIA, and shipping trackers. While timelines for resolution of the Hormuz situation remain uncertain, the physical supply/demand imbalance is undeniable. Investors and policymakers should prepare for heightened volatility and structurally higher energy prices in the near term.

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