Rachel Ziemba states if the Strait of Hormuz "stays as effectively closed, we will see oil prices continuing to grind out." The physical supply disruption is immense (~11 mbd per IEA), and Asian refiners are already paying premiums of $150-160 for deliverable crude. The scale of the effective outage outweighs strategic reserve releases and sanctions exemptions, pointing to higher prices. The Strait reopens quickly, or a coordinated global release of reserves overwhelms the supply gap.
Rachel Ziemba states if the Strait of Hormuz "stays as effectively closed, we will see oil prices continuing to grind out." The physical supply disruption is immense (~11 mbd per IEA), and Asian refiners are already paying premiums of $150-160 for deliverable crude. The scale of the effective outage outweighs strategic reserve releases and sanctions exemptions, pointing to higher prices. The Strait reopens quickly, or a coordinated global release of reserves overwhelms the supply gap.