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Analyst: The process of reopening the Strait of Hormuz is proceeding slowly, and oil price risks remain skewed to the upside
Svmuu News: Neil Crosby of Sparta Commodities stated in a report that reopening the Strait of Hormuz will take time, and restoring supply to more than 50% of its previous level “could take a month.” He noted that following the recent sharp decline in oil prices, price risks are clearly skewed to the upside because “there are still many things that could go wrong,” while if everything proceeds as planned, the additional downside potential is limited. “Even if the rest of the political process proceeds as planned, the process of moving the ships currently effectively trapped in the Persian Gulf out of the region could be quite slow. There is also the issue of mine clearance, which won’t be quick either.” (Jin Shi)
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