Some countries will face an oil shortage this summer — Bloomberg
For the second week in a row, prices on the global market have been rising due to the blockade of Iranian ports. Experts warn that the situation is rapidly escalating and could lead to a “critical shortage” of raw materials in the near future, particularly for certain countries.
This is reported in a Bloomberg article.
According to the agency, the market has reacted to the risks of a prolonged closure of the Strait of Hormuz—one of the world’s key oil supply routes. Before the war, about one-fifth of global crude oil volumes were transported through it.
Over the past two weeks, prices have risen by more than 25%. The reason was the protracted negotiations and the de facto blockade of this vital sea route, which caused sharp market fluctuations and a shift in the structure of futures contracts.
“Every day continues to be an adventure, but also a chance to make money quickly,” noted oil market analyst Carl Larry.
Additionally, trading volumes in Asian markets were below average. Markets in many countries, including China, Singapore, Germany, France, and Brazil, are closed for Labor Day.
As Bloomberg notes, ConocoPhillips is warning of the risk of a “critical shortage” of the resource for certain countries. According to CFO Andy O’Brien, the situation could deteriorate significantly in the coming months.
He explained that the supplies that previously supported the market have effectively run out—the tankers that set sail from the Persian Gulf at the end of winter have already reached their destinations.
As a result, countries that rely on oil imports may be the first to feel the shortage as early as June or July.
The situation is further complicated by uncertainty surrounding key supply routes, particularly due to tensions in the Middle East, which are affecting global energy markets.
The price of Brent crude for July delivery rose by 0.5% to $110.90 per barrel.
The price of WTI crude oil for June delivery remained virtually unchanged at $105.02 per barrel.
As a reminder, high oil prices will not save the Russian economy.
