BOA SOH needs 10 times more ships to stabilize the oil market

quote:

---

“We’ve been expecting oil to be in the $70 to $80 a barrel range for Brent on the assumption that we were going to see some resolution,” Francisco Blanch, Bank of America’s head of commodities and derivatives research, told CNBC on Monday. “But if we don’t, we’re going to keep creeping higher into the winter.”

The warning comes as negotiations over reopening Hormuz remain unresolved and tanker traffic through the world’s most important oil chokepoint remains a fraction of pre-war levels.

Blanch said only around 5 to 10 ships per day are currently passing through Hormuz, compared with roughly 140 before the war. With some crude now being rerouted through Saudi Arabia and the UAE, traffic would need to recover to around 80 to 100 ships per day just to stabilize energy markets.


“We have enough crude oil for now, but we have true shortages in diesel markets, gasoline markets and also global gas,” Blanch said. “We have some serious shortfalls in end products in the energy markets right now.”

---