Traders Say Actual Oil Supply Loss From Hormuz Closure Lower Than Early Estimates
Traders now assess that the volume of oil supply lost after the Strait of Hormuz closure was smaller than initial reports of more than 10 million barrels per day. Alternative export routes and reduced Chinese imports helped limit the shortfall.
realitytea.comTraders now assess that the volume of oil supply lost after the Strait of Hormuz closure was smaller than initial reports of more than 10 million barrels per day. In the days after the U.S. and Israeli strikes on Iran that led to the closure, most coverage focused on daily supply figures above 10 million barrels. Newer assessments from traders indicate the actual shortfall was lower.
“After an initial disruption at the onset of the conflict, flows strengthened as alternative logistics scaled up,” analytics provider Kpler stated, as quoted by Reuters last week. Saudi Arabia rerouted exports through its East-West pipeline to the Red Sea.
Other Gulf producers shifted to dark-mode tanker movements. Falling Chinese crude imports also reduced the overall market imbalance created by the closure. Declining global oil inventories remain the largest remaining risk cited in the coverage. com reported that these factors together produced a smaller net loss than the figures published immediately after the shutdown.
