Oil shortage could hit some countries as early as June — Bloomberg
Oil shortage may hit some countries as early as June (photo: Getty Images)
Oil prices are rising for a second consecutive week amid a blockade of Iranian ports. Some countries may face a serious oil shortage as early as June, Bloomberg reports.
Oil prices are rising
As the agency writes, the market reacted to the risks of a prolonged closure of the Strait of Hormuz, one of the key oil supply routes in the world. Before the war, about one-fifth of global crude oil volumes were transported through it.
Over the past two weeks, prices have increased by more than 25%. The reason was the prolongation of negotiations and the effective blocking of an important sea route, which caused sharp market fluctuations and changes in the structure of futures.
"Every day continues to be an adventure, but also a chance to make money...quickly," said oil market analyst Carl Larry.
In addition, trading volumes in Asian trading were below normal. Markets in many countries, including China, Singapore, Germany, France, and Brazil, are closed for Labor Day.
Risk of oil shortage
As Bloomberg notes, ConocoPhillips warns of the risk of "critical shortages" of the resource for certain countries. According to Chief Financial Officer Andy O'Brien, the situation may significantly worsen in the coming months.
He explained that supplies that previously supported the market have effectively been exhausted — tankers that departed from the Persian Gulf at the end of winter have already reached their destinations.
In this regard, countries that depend on oil imports may be the first to feel a shortage of the resource as early as June–July.
The situation is also complicated by uncertainty around key supply routes, in particular due to tensions in the Middle East, which affects global energy markets.
Oil prices
The price of Brent crude oil for July delivery increased by 0.5% to $110.90 per barrel.
The price of WTI crude oil for June delivery almost did not change, remaining at $105.02 per barrel.
Oil prices are rising because negotiations between the United States and Iran are not yielding results, and the situation in the Strait of Hormuz remains tense and unstable.
Because of this, risks to the supply of energy resources and fertilizers, which are actively transported through this sea route, are increasing.
The US Energy Information Administration also warned that even if the strait is not completely blocked, fuel prices may remain high for several more months.
Experts explain that the market does not react immediately, so the stabilization of supplies after the end of the conflict will also take some time.
