Oil Market Ticking Clock: Industry Braces for Breaking Point

The global oil market is facing a critical supply crunch due to the ongoing conflict in Iran and the closure of the Strait of Hormuz.

The industry has shown remarkable resilience so far, with import-dependent economies securing alternative sources of supply and traders tapping into inventories.

However, experts warn that the oil market may be only months away from a breaking point if the Strait does not reopen by late May, as projected.

Veteran analyst Paul Horsnell estimates that global crude and fuel stocks could fall at a pace of 10.8 million barrels per day in April, with some commercial inventories potentially reaching minimum operating levels as early as August.