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Oil prices flat as Trump’s plan for Strait of Hormuz fails to calm market

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Published20 MAY 26 - 15:24 Reading time  minutes

“Global observable oil inventories are starting to fall sharply, which should weigh on market sentiment more than political statements for a reopening of the strait. Normalising the flow through the Strait of Hormuz will take more than what Project Freedom is offering, whilst the yawning gap in oil supply will take months to resolve.” — June Goh, Senior Oil Analyst at Sparta Commodities

  • Expert: June Goh (Senior Oil Analyst, Sparta)
  • Publication: Al Jazeera
  • Market Focus: Crude Oil, Trade Flows, Geopolitical Risk, Strait of Hormuz
  • Geographies: Middle East, Singapore, Global

In a recent analysis for Al Jazeera, Sparta’s Senior Oil Analyst, June Goh, warns that markets are misreading Project Freedom — global observable oil inventories are falling sharply, and that supply reality should matter far more to sentiment than political statements about reopening the strait. With Hormuz transits down from 129 daily crossings pre-war to just 20, and Goldman Sachs estimating 14.5mb/d of global production disrupted, the gap is far larger than any escort operation can bridge. Goh is explicit that normalising flows will take months, not weeks. Traders should monitor inventory draw rates as the clearest signal of how deep the supply hole actually is.

[Read June Goh’s full market commentary in Al Jazeera]

Author

June Goh

Senior Oil Analyst

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