A US-Iran Peace Deal May Not Be Enough To Save the Oil Market Now: Here’s Why
BeInCrypto
Logistical bottlenecks and structural storage constraints mean an immediate oil market recovery is unlikely, even if a US-Iran peace deal is reached.Summary
HFI Research suggests that the oil market has passed a critical breaking point, and diplomatic resolutions regarding the US-Iran conflict will not provide an immediate fix. Significant logistical hurdles, including tanker transit times, discharging delays, and the need to drain 200 million barrels of onshore storage, mean that supply chains will remain disrupted for months. Consequently, even if the Strait of Hormuz reopens, market equilibrium may only be restored through demand destruction due to the massive loss in cumulative storage.
(Source：BeInCrypto)