Home / Business and Economy / World Faces Stock Depletion as Gulf Oil Flow Stops
World Faces Stock Depletion as Gulf Oil Flow Stops
31 Mar
Summary
- Australia expects oil deliveries to cease by April 20.
- Global oil system shifts to stock depletion, not flow shock.
- Strait of Hormuz traffic halted after Feb 28 strikes.
Investment bank JP Morgan has charted the final global arrivals of Gulf oil. Australia anticipates its last shipments by April 20, with parts of Africa and Asia facing earlier disruptions from April 1. The United States had an April 15 cut-off, though its domestic production may mitigate shortages.
Europe will experience the effects by mid-April, primarily through increased prices rather than direct supply shortages. The international oil system is moving from a "flow shock" to a "stock depletion" issue, where existing reserves are diminishing. Traffic via the Strait of Hormuz has been largely stopped since February 28, the same day US and Israeli forces struck Iran.
