From the Trump administration's recentProject Freedompush to mounting warnings from Wall Street analysts, security experts, energy strategists, and major oil company executives, there is a growing sense that the global energy market is quickly approaching a breaking point due to the heavily disrupted Strait of Hormuz.
There was good news over the weekend, as a Qatari LNG tanker transited the Hormuz chokepoint. However, a second tanker from the energy-rich Gulf countryabruptly made a U-turnin the Strait early Monday, dashing hopes for any near-term normalization, especially since theU.S. and Iran have yet to reach a peace deal.
The countdown to global energy chaos isincreasingly viewed in weeks, not months. If the maritime chokepoint remains impaired for the next several weeks, according to Frederic Lasserre, head of research at Gunvor, one of the world's largest oil traders, then the "tipping point to something has to give is June."
Warnings of incoming energy market turmoil continued on Monday, with the CEO of Aramco, formerly known as theSaudi Arabian Oil Company.Amin Nasser warnedthat themarket could losearound 100 million barrels of oil each week if Hormuz remains closed.
Nasser told investors on an earnings call earlier today that if the Hormuz chokepoint is disrupted for another couple of weeks, then it would take the global energy market until 2027 to normalize.
Here are the most important comments from Nasser's call with the analyst:
Energy Supply Shock Is Largest Ever Experienced
It'll Take Months for Oil Market to Rebalance Even If Hormuz Reopens Today
Market to Normalize in 2027 if Hormuz Opening Is Delayed by Few More Weeks
Market Has Seen Supply Loss of About 1 Billion Barrel of Oil
Source: ZeroHedge News
