WS #14661
The closure of Saudi Arabia's East-West pipeline, which carries 4-5% of global oil supply, combined with a 77% drop in Strait of Hormuz traffic, has created the largest supply disruption in history. This physical loss of supply, compounded by geopolitical tensions and sanctions threats, is forcing a permanent reconfiguration of global LNG and crude markets. Energy producers are benefiting from elevated prices, while downstream consumers face margin compression.
Middle East Oil Supply Shock
The closure of Saudi Arabia's East-West pipeline, which carries 4-5% of global oil supply, combined with a 77% drop in Strait of Hormuz traffic, has created the largest supply disruption in history. This physical loss of supply, compounded by geopolitical tensions and sanctions threats, is forcing a permanent reconfiguration of global LNG and crude markets. Energy producers are benefiting from elevated prices, while downstream consumers face margin compression.