US Official Defies Market Skepticism with Optimistic Oil Flow Estimate
The Iran war has triggered what many say is the largest oil-supply shock in history. However, the market has defied expectations of high prices, with West Texas Intermediate crude closing above US$100 on only 18 days out of the 115 trading sessions since the war started.
US Energy Secretary Chris Wright claims that almost 9 million barrels a day had crossed the Strait of Hormuz during the previous week. This estimate is significantly higher than most tanker trackers, which peg recent Hormuz flows somewhere around 4-5 million barrels a day.
The debate is about how much oil is passing unnoticed through the strait. Wright emphasized that many private businesses undercount the number of ships leaving the Strait due to covert movements through the waterway.