Overview
- Fighting and a de facto blockade in the Strait of Hormuz cut key Gulf flows by an estimated 14 to 15 million barrels a day, forcing rapid rerouting of global shipments.
- U.S. crude exports climbed to a record near 5.2 million barrels a day in April as Asian buyers shifted to American supply, with Corpus Christi and other Gulf terminals running close to capacity.
- Commercial stocks of jet fuel, naphtha and LPG have fallen to about 45 days of demand, and Goldman Sachs warns Europe’s jet-fuel cover could drop below the IEA’s 23‑day benchmark in June, prompting some flight cancellations.
- Brent near $113 a barrel and WTI around $104 reflect tighter product markets and shipping bottlenecks that slow the move of fuel from surplus hubs to regions in need.
- Analysts say pipeline limits, terminal throughput and refinery setups cap how much light U.S. oil can replace lost Middle Eastern barrels, leaving Europe and parts of Asia exposed to higher costs and patchy supply.