Goldman Sachs flags potential oil shortages amid Hormuz closure

Goldman Sachs has warned that countries could soon face oil shortages as the US-Israeli war on Iran keeps the critical Strait of Hormuz effectively closed.

“As the last tankers that crossed the Strait of Hormuz before the war are reaching their destination, concerns about potential oil shortages are rising,” strategist Daan Struyven wrote in a note, News.Az reports, citing foreign media.

Struyven highlighted critically low supplies of petrochemical feedstocks such as naphtha and liquefied petroleum gas (LPG) in Asia, with multiple countries facing cross-product scarcity this April.

While remaining flows from the Strait, alternative imports, export restrictions, and domestic oil stocks may soften the impact on gasoline and diesel, the risk of fuel oil and naphtha shortages remains high, particularly in Asia.

Oil prices have been extremely volatile amid Operation Epic Fury. After dipping briefly below $100 in late March, prices surged following President Trump’s April 1 primetime address, in which he vowed to hit Iran “extremely hard” over the next two to three weeks.

As a result, West Texas Intermediate (WTI) crude rose 11.4% to $111.54 per barrel on April 2, while Brent crude jumped to $109.03 per barrel. Continued war rhetoric from the president over the weekend could put further upward pressure on oil prices and keep the Strait of Hormuz in a precarious position.

News.Az 

By Nijat Babayev