Strait of Hormuz reopens, increasing oil supply to the global market
The reopening of the Strait of Hormuz has led to an increase in ship traffic, resulting in a surge of oil entering the global market.
This surge in oil supply is expected to collide with a market that currently has reduced demand.
China’s internal oil demand has dropped sharply, leading to a decrease in imports and allowing other countries to find alternative international supplies.
The sudden change in China’s oil demand has raised questions about whether this is a temporary or permanent shift in the market.