Global oil market lost about a billion barrels, deficit to last for months after war in Iran - traders
Kyiv • UNN
Traders predict oil shortages for months due to the halt of traffic in the Strait of Hormuz. Restoration of supply chains will take up to four months.
The global oil market may experience a prolonged supply deficit even after the conflict around Iran ends and shipping through the Strait of Hormuz resumes. This was stated by the heads of leading trading companies, Bloomberg reports, writes UNN.
Details
According to their estimates, the market has already lost about one billion barrels of oil, and it will take several months to restore supplies.
The entire supply chain needs to be rebuilt
According to him, returning to pre-war levels could take at least three to four months.
Brent crude futures are currently trading below $100 after falling from peak values of around $120.
Risks to the market
Industry leaders warn that if the conflict drags on, prices could rise sharply, posing risks to the global economy.
It is also noted that traffic through the Strait of Hormuz has almost completely stopped this week.
Long-term consequences
After the resumption of shipping, a short-term price reduction due to the release of reserves is possible, but later the market may again face a deficit.
Traders also point to problems with logistics and a shortage of tankers, which will complicate the rapid restoration of supplies.