Gulf producers keep oil supplies moving despite Hormuz disruption
Nearly seven months after Iran shut the Strait of Hormuz at the start of the war, oil supplies have continued to meet current global demand, according to analysts cited by the South China Morning Post. Prices are high but not at feared extreme levels, though the cost is creating political difficulties.
Oil supplies have continued to meet current global needs nearly seven months after Iran shut the Strait of Hormuz at the start of the war, according to analysts cited by the South China Morning Post. The closure disrupted a sea passage through which about 15 million barrels of oil a day had moved, prompting fears that prices would surge and damage the global economy. Those worst-case effects have not materialised at the scale initially feared.
The report says oil remains expensive but not exorbitantly priced. Saudi Arabia and other Gulf producers have helped keep supplies flowing, although the supplied excerpt does not specify the volumes they have added or the routes used to replace disrupted shipments. Analysts said enough oil is currently available to meet global demand.
The higher prices are nevertheless creating political problems for United States President Donald Trump and others, the report says. The material does not provide a current oil price, details of the war or a forecast for how long Gulf producers can maintain the flow.
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