2026-03-10 06:56:00
- There is a significant amount of supply disruption to the market
- Almost 17% of total supply from the region goes through the Strait of Hormuz, so it is significant
- We are bringing the East-West pipeline to full capacity in the next couple of days
- We can speed it up but the issue was re-routing some of the customers
- But very soon we will be at full capacity for the pipeline
- There is 180 million barrels of disruption so far
- We are doing our best to meet the majority of our customers’ requirements under the different circumstances
- Spare oil output capacity is mostly concentrated in this region
- So, shipping resuming in the Strait of Hormuz is absolutely critical
- Global inventories are already at a five-year low, we will see faster drawdowns
- There would be catastrophic consequences for the oil market the longer the disruption goes on
- And the more drastic the consequences will be for the global economy if so
More to come..
This article was written by Justin Low at investinglive.com.
