Gulf oil could rebound quickly after Hormuz reopening, but scars linger
TL;DR
Goldman Sachs says a safe reopening of the Strait of Hormuz could restore Gulf oil quickly, with roughly 70% of lost output back in 3 months and about 88% in 6 months, after April’s estimated 14.5 mb/d loss. However, ongoing damage to energy infrastructure, limited Gulf tanker capacity, and complexities around restarting wells could slow the final recovery and leave lasting market scars if hostilities resume; Ras Laffan LNG facilities in particular may require years to recover.
Topics:businessenergy#commodities-markets#energy#energy-infrastructure-damage#goldman-sachs#gulf-oil#strait-of-hormuz
- How quickly can Gulf oil start gushing again? Financial Times
- Gulf Countries Try to Buy Time to Find Hormuz Workarounds, Goldman Says WSJ
- Persian Gulf Oil Output Is Down 57%. These Are the Energy Stocks Built for This Moment. The Motley Fool
- Gulf oil output likely to rebound within months after Hormuz reopening, Goldman says Reuters
- Goldman Says Persian Gulf Oil Supply Is 57% Below Pre-War Levels Bloomberg.com
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