Gulf Oil Output Sees Path to Quick Recovery Post-Hormuz Reopening

Gulf oil production is expected to rebound within months after the Strait of Hormuz fully reopens, according to Goldman Sachs.

The bank estimated that about 14.5 million barrels per day of Gulf crude output, around 57% of pre-war supply, was offline in April due to precautionary shutdowns and stock management rather than physical damage to oilfields.

A safe and sustained reopening of the strait would allow production to return relatively quickly, supported by spare capacity in Saudi Arabia and the United Arab Emirates, Goldman said.