""You have this massive air pocket. At this stage, we're looking at probably somewhere around a half a billion barrels of what would normally be flowing out of Hormuz that has now not been flowing," said Rory Johnston, founder of Commodity Context."
""In the oil industry there's a difference between what people call paper oil and physical oil. Right now there's a shortage in paper oil, which are contracts. It represents oil that can be shipped, as opposed to being an actual barrel travelling on a ship.""
""Japan has roughly three weeks of gas in storage. Meanwhile, natural gas futures prices contracts that reflect what traders expect gas to cost in the weeks and months ahead have soared even more than oil since the war began.""
The war in the Middle East has halted energy shipments, causing a significant crisis in energy markets. Prices for gas, oil, jet fuel, and plastics are sharply rising. The closure of the Strait of Hormuz has led to a substantial reduction in oil flow, with an estimated half a billion barrels not being shipped. As the last shipments arrive, a transition from a paper oil shortage to a physical oil shortage is expected. Governments are releasing reserves, but this may not be sufficient to address the supply issues.
Read at www.cbc.ca
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