finance
Hormuz Crisis Disrupts 20 Percent of Global LNG Flows and Over 1 Billion Barrels of Crude
Roughly one-fifth of global LNG flows and more than 1 billion barrels of crude oil supply have been disrupted since March. The International Energy Agency reported that world oil supply this year will be 3.9 million barrels per day lower than last year.
May 20, 7:00 PM·1m read1 source
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Roughly one-fifth of global LNG flows and more than 1 billion barrels of crude oil supply have been disrupted since March due to the Hormuz crisis. Governments have begun rationing fuel and advising conservation measures. Some observers have predicted a complete transformation of global energy consumption patterns. 9 million barrels daily lower than it was last year.
The reduction stems from oil flow disruptions caused by the conflict involving the United States, Israel, and Iran, which has cut Middle East production. High oil and gas prices have temporarily increased sales of electric vehicles and demand for solar power and coal.
Countries are prioritizing energy security and affordability during the current period. The International Energy Agency expects oil demand to remain relatively resilient despite lower Middle Eastern output.
Analysts argue the long-term global energy mix is unlikely to change dramatically. Oil, gas, and coal are expected to regain market share once prices normalize.
