U.S. Military Helping Move 7 Million Bpd Out of Persian Gulf, Wright Says
Military Helping Move 7 Million Bpd Out of Persian Gulf, Wright Says What I Cover Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and… U.S.
Energy Secretary Chris Wright just gave the market a number that helps explain why Brent crude isn't trading at $150 per barrel.
Speaking at a Bloomberg Energy event in Houston on Friday, Wright said the U.S.
military is now helping move roughly 7 million barrels per day (bpd) of oil out of the Persian Gulf.
According to Wright, that's about half of the oil that remains stranded following the disruption of tanker traffic through the Strait of Hormuz during the ongoing U.S.-Israeli conflict with Iran.
The figure is significant because normal flows through Hormuz are typically around 20 million to 21 million bpd, making the waterway the world's most important oil chokepoint.
If Wright's estimate is accurate, current exports are running at roughly one-third of normal levels—far higher than many traders appeared to assume.
In fact, the market may have been pricing in a much worse situation.
Rebecca Babin, senior energy trader at CIBC Private Wealth, said at the same event that oil prices in the upper-$80-per-barrel range suggested investors believed only 3 million to 4 million bpd were making it through the strait.
Brent crude futures were trading around$87 per barrelon Friday, down more than 3.7% on the day despite the continued disruption.
That's an astonishingly subdued price response considering that roughly two-thirds of normal Hormuz volumes remain offline.
The explanation may be that traders are now hearing the message that supply losses have not been as severe as feared.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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