$CL The pressure on Middle East energy supplies may be greater than many people imagine. As of Friday, Saudi Arabia's east-west oil pipeline has been shut down following recent attacks, affecting about 4 million barrels per day of exports; the Bab el-Mandeb Strait also faces closure risk, involving up to about 9 million barrels per day of supply. Meanwhile, the throughput capacity of the Strait of Hormuz is only about 20% of pre-war levels, restricting roughly 15 million barrels per day of oil flows. Even after deducting some route overlap, the potential impact remains significant.
My feeling is that oil price volatility is likely to stay high in the coming period, after all several key energy corridors are under pressure at the same time.
Do you think the market has already fully reflected this risk?
My feeling is that oil price volatility is likely to stay high in the coming period, after all several key energy corridors are under pressure at the same time.
Do you think the market has already fully reflected this risk?
