Rebalancing the liquids markets amid SOH disruption

AI Summary

The article discusses the rebalancing of liquids markets following the disruption of flows through the Strait of Hormuz. It highlights factors driving this adjustment, including supply cuts and inventory drawdowns, resulting in a structurally tighter market environment.

In this Market Pulse, we analyse how the market is rebalancing after the removal of around 20 Mbd of flows through the Strait of Hormuz. The adjustment is being driven by supply cuts, refinery run reductions, limited rerouting, demand erosion, and inventory drawdowns, but remains incomplete, leaving the system structurally tighter. Sixty days into the ...