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Oil slips toward $83 as Strait of Hormuz flows rebound
Goldman Sachs estimates Strait of Hormuz crude and oil-product exports rose to about 15 to 16 million barrels per day, compared with roughly 5 to 6 million in March.
Oil prices have eased sharply from an April peak above $120 a barrel, as flows through the Strait of Hormuz have recovered even though disruptions tied to the Iran conflict have not ended, according to analysis cited by Yahoo Finance.
Goldman Sachs analysts Daan Struyven and Yulia Zhestkova Grigsby attributed the rebound to the market finding ways around the chokepoint, including more dark crossings by specialized shippers and increased ship-to-ship transfers that make cargo routing harder to track.
They estimated total crude and oil-product exports through the Strait fell to roughly 5 to 6 million barrels per day in March, down from about 22 to 24 million before the conflict, and then recovered to approximately 15 to 16 million per day since March, still 7 to 8 million barrels short of prewar levels.
Yahoo Finance also noted Goldman’s view that this recovery reduces upside risk for crude oil, with crude specifically still transiting the Strait at about 6 to 8 million barrels per day, as crude moved from around $89 at the time of the note toward about $83 more recently.
Latest closeWTI crude $83.44 ▼0.1%