After the Strait of Hormuz was closed people expected record oil prices sometime soon after. Its been 2.5 months since the Strait was close and 14% of global oil was lost, yet Brent is only $109, after 10 weeks of the Ukraine War a crisis that effected far less oil, oil rose to roughly the same price, Why has oil prices not gone higher? One big one early on in this conflict was oil traders optimism. Now its for three reasons
1. Exports from the Americas and Norway- US increased exports by 3.8 m barrels a day, Canada by 400,000 b/d, Venezuela and Norway each added 200,000 b/d; and Brazil added 100,000 b/d.
2. Demand Destruction both from waste and economic loss
3. Drawing down strategic reserves
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After the Strait of Hormuz was closed people expected record oil prices sometime soon after. Its been 2.5 months since the Strait was close and 14% of global oil was lost, yet Brent is only $109, after 10 weeks of the Ukraine War a crisis that effected far less oil, oil rose to roughly the same price, Why has oil prices not gone higher? One big one early on in this conflict was oil traders optimism. Now its for three reasons
1. Exports from the Americas and Norway- US increased exports by 3.8 m barrels a day, Canada by 400,000 b/d, Venezuela and Norway each added 200,000 b/d; and Brazil added 100,000 b/d.
2. Demand Destruction both from waste and economic loss
3. Drawing down strategic reserves