Strait of Hormuz Bottleneck Clears as 80 Million Barrels Prepare to Exit

Of the vessels currently waiting for passage, 21 are charted for Asia. China remains a primary destination for five of these ships, while another five are set to dock in Malaysia and Singapore to serve as regional transshipment hubs. Notably, none of the cargo on board originated from Iranian oil fields, according to Bloomberg.

This influx of supply arrives as major financial institutions recalibrate their energy forecasts. Analysts at Morgan Stanley, Goldman Sachs, and Citi have already downgraded their price outlooks, citing a diminished risk of hostilities at the chokepoint. Citi maintains a bearish stance, projecting Brent crude will average $75 per barrel in the coming quarter, while Morgan Stanley anticipates a recovery to $90 by the third quarter. Brent was trading at $79.96 per barrel at the time of reporting, with WTI holding at $75.97.