The US is rapidly exhausting its potential to offset the oil shock from the Middle East war ****
The US is rapidly exhausting its potential to offset the oil shock from the Middle East war ****
The US is rapidly exhausting its potential to offset the oil shock from the Middle East war ****
The US is rapidly exhausting its potential to offset the oil shock from the Middle East war ****
The US is rapidly exhausting its potential to offset the potential to offset the oil shock from the Middle East war ****
The US is rapidly exhausting its potential to offset the potential to offset the US "shock absorbers", which will soften the impact on the oil market from the loss of supplies of crude oil from the Middle East, while the war with Iran is raging - which increases the risk of a greater slowdown in the global economy, writes Money.bg.
With the US and Israel entering the third week of the war, Iran is at least 15% of the world's oil reserves are effectively blocked in the Persian Gulf after the closure of the region's vital shipping lane, the Strait of Hormuz, according to Reuters estimates.
Saudi Arabia, the world's top oil exporter, is aiming to divert up to 5 million barrels a day to the Red Sea port of Yanbu. The United Arab Emirates is also rerouting some of the additional crude oil exports through the Fujairah oil terminal.
As a result, about 15 million barrels of oil per day from the Middle East remain unavailable to global markets - an interruption unprecedented in the post-World War II era, according to Reuters.
The shock of The disruption in supplies has pushed crude oil prices above $100 a barrel, and global prices for refined fuels such as diesel and jet fuel are rising even more sharply, raising fears of a global shortage.
Attempts to compensate for the shortage of oil and refined fuels
The Trump administration is acutely aware The political sensitivity of the soaring prices of gasoline - the barrier in the last two weeks, using almost all available levers to put pressure on the market in the country, writes Reuters.
Washington even issued a permit for countries to buy sanctioned Russian crude oil and petroleum products, which are currently being loaded onto tankers in sea. The US Treasury Department had already issued a similar 30-day waiver specifically for India.
The volume of oil in question is significant. As of March 12, Russian crude oil and refined products by tanker totaled about 245 million barrels - close to the volume of lost supplies from the Middle East, according to the analysis firm Krler.
But the total figure actually overstates the likely burden on oil markets even if the sanctions relief is extended. The reason is that China, India and Turkey already buy the bulk of Russian oil despite Western sanctions, which means that the sanctions relief actually releases far fewer additional barrels of oil onto the market than the total volume would suggest.
The MAE has also taken aggressive action. The organization announced plans under which its 32 member countries would release 400 million barrels from their reserves - an unprecedented reduction in stocks, representing about a third of the total strategic petroleum reserves managed by the agency.
The United States will contribute 172 million barrels of its strategic petroleum reserves of 415 million barrels, which is the largest share to date. That leaves Washington with only about 100 million additional barrels that could easily be used due to technical and operational constraints, according to JPMorgan.
The Trump administration is also looking at other options the US has, such as allowing the sale of winter gasoline during the summer driving season or urging Congress to Reduce taxes on gasoline and diesel.