Hormuz Disruptions Could Tighten Global Oil Supply Further

Global oil supplies could face renewed pressure as crude shipments through the Strait of Hormuz remain severely disrupted, an energy analyst has warned. Oil flows through the waterway are estimated at about one-third of pre-disruption levels, with only 5 million to 7 million barrels of crude leaving the Persian Gulf daily. Some producers are relying on ship-to-ship transfers outside the Strait to keep exports moving. Earlier relief came from releases of strategic oil reserves and reduced crude imports by China. However, reserve levels are falling and China has begun buying more oil again. The analyst warned that prices and supply conditions could worsen if Middle East tensions escalate and the disruption continues.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.