US oil blockade is set to boost American exports—and prices at the pump
Subscribe to enjoy similar stories.President Trump is pitching a U.S. naval blockade of the Strait of Hormuz as an opportunity for American oil-and-gas exporters. The squeeze on supplies is a bad omen for prices at the pump.The U.S.
plan to wrest control of the key waterway from Iran would potentially cut off the roughly 2 million barrels of oil that Iran has continued to ship through the Strait each day, most of which was headed to China.With 20% of the world’s daily supply of oil and liquefied natural gas already trapped behind the Strait, Japan, South Korea and other Asian countries that rely on the Middle East are looking elsewhere to replenish their dwindling energy supplies. Here’s what that means for the U.S. energy market:Yes.
On social media this weekend, Trump applauded a picture of a map showing a conga line of vessels sailing to the U.S. In another post, he said large numbers of empty oil tankers were heading to the U.S. to load up “with the best and ‘sweetest’ oil (and gas) anywhere in the World.”Market intelligence firm Kpler is tracking 70 supertankers, known as Very Large Crude Carriers, or VLCCs, that are due to arrive in Gulf Coast ports in April and May.
Last year, an average of 27 supertankers loaded up on U.S. crude each month.Each vessel can carry about 2 million barrels of oil. The massive oceangoing vessels are designed for long trips, such as the 11,700 nautical miles between Houston and Singapore.U.S.
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