Hormuz Shipping Traffic Plunges as Middle East War Escalates
Ship traffic through the Strait of Hormuz slumped to single digits on Thursday, down from a 10-day average of 15 vessels that transited the chokepoint in both directions, Reuters reports, citing preliminary vessel-tracking data by Kpler as of early Friday. Only seven vessels, two outbound and five i
Source: OilPrice.com
―
DW NOTE
The Strait has been effectively closed for 195 days. Six ships transited on September 6 versus a normal 85 per day. Global supply is down 4.3 million barrels per day — roughly 4% of world output. Yet WTI is at $101, still 9.8% below its recent high. Either the market is pricing in imminent reopening, or it has forgotten what a supply shock looks like.