Abu dhabi: Fuel export flows through the Strait of Hormuz have almost completely stopped due to the conflict in the Middle East, the International Energy Agency (IEA) stated, APA-Economics reports. The interruption in the flow of fuel exports has had a notable impact on global oil product markets, as confirmed by the IEA’s recent report.
According to Azeri-Press News Agency, the conflict has led to the shutdown of over 3 million barrels per day of refining capacity in the region. This has resulted in a lack of export routes. In addition, refineries in other regions are expected to encounter increasing restrictions due to shortages of crude oil feedstock.
The report further highlights that the flow of oil and petroleum products through the Strait of Hormuz has decreased from approximately 20 million barrels per day to minimal levels. With limited options to bypass this critical route and storage facilities nearing capacity, Persian Gulf countries have collectively reduced their daily oil production by at least 10 million barrels. The report warns that if shipping is not quickly restored, supplies will decline even further.