Analysts Tell OPEC+ Hormuz Disruption to Last Through 2026
Analysts said supply disruptions could last through 2026, with fuel prices still elevated as the Strait of Hormuz remains effectively blocked.
- Analysts at an OPEC technical meeting on Monday warned that supply disruptions from the Strait of Hormuz closure will persist for many months, even if the waterway reopens promptly.
- The Strait of Hormuz, through which 20% of global oil and gas previously flowed, was effectively blocked on Feb 28 following the outbreak of war between a US-Israeli alliance and Iran.
- HSBC analysts warned in a June 1 report that global oil inventories may reach "critical functional lows," which could trigger sharper price rises and genuine shortages as market buffers vanish.
- Adnoc chief executive Sultan Al Jaber stated that Middle East oil flows will not fully recover until well into 2027, even if the Iran conflict ends immediately.
- If the Strait remains closed longer than the United States and China can sustain current trade levels, Dated Brent crude could surge to $150 per barrel, according to Morgan Stanley strategists.
11 Articles
11 Articles
'Powder keg': New fuel supply figure has top oil analyst sounding the alarm
Patrick De Haan, a renowned oil industry analyst, had a dire warning for the American public on Tuesday as the Strait of Hormuz closure continues to pressure global oil supplies."Tomorrow, U.S. distillate inventories will likely fall under 100 million barrels for the first time in over 20 years, exa...
HSBC Flags a Super-Squeeze In the Oil Market
The Middle East crisis and the still closed Strait of Hormuz have created a “super-squeeze” in oil markets, which could lead to sharp price spikes, analysts at HSBC say. Prices have rallied in recent months not because of some “super-cycle” but because of the massive supply disruption and an actual squeeze in physical supply, the UK-based bank said in a note carried by Bloomberg. “The longer the strait is closed, the more inventories are run dow…
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