Kea投 Macro: Releasing reserves cannot replace the navigation of the Strait of Hormuz

Hamad Hussain from Capital Economics stated in a report that the release of strategic petroleum reserves by International Energy Agency member countries could somewhat alleviate pressure on oil prices, but it cannot replace the role of restoring navigation through the Strait of Hormuz. If the conflict in Iran ends quickly, releasing 300 to 400 million barrels of reserves might be enough to completely offset the supply loss, but “the speed at which IEA member countries provide emergency crude to the market cannot simultaneously fill the supply gap in the Middle East.” He said, “This again highlights that reopening the Strait of Hormuz is key to sustainably lowering energy prices.”