The oil market is four weeks away from a "tipping point" that will drive prices significantly higher, traders warn, as the blockade in the Strait of Hormuz reduces global reserves, according to the Financial Times.
Markets are starting to weigh the chances of a much bigger conflict after US President Donald Trump told oil company executives on Thursday that the blockade of Hormuz could "continue for months".
Traders and analysts point out that global inventories of crude oil, gasoline, diesel and jet fuel will reach critical lows by the end of May, when prices will rise rapidly.
"We don't have months," said Frederic Lasserre, head of research at Gunvor, warning that there will be "huge pain" as economies must stop using fuel. "The turning point is clearly June," he said.
For her part, Amrita Sen, founder of the consulting firm Energy Aspects, said that if the war continues until the end of June, all reserves will be depleted.
capital.gr
