When the dust finally settles on the Middle East conflict that has wreaked havoc on global energy markets, the process of restoring stability promises to be a lengthy and arduous task. The Strait of Hormuz has now been closed to most vessels for seven weeks, and even with the IEA overseeing the largest ever emergency stock releases, supply shortages are materializing.
These shortages are set to worsen and become more widespread in the coming weeks. Even if a negotiated settlement is reached imminently, the logistical challenges of clearing laden tankers from the Gulf, re-routing ballasting tankers to Gulf ports and restarting shut-in production mean that a sizeable supply crunch is already baked in, no matter how the coming days and weeks unfold (MEES, 10 April). (CONTINUED - 951 WORDS)
