Iran · Strait of Hormuz · Saudi Arabia · Fortune Technology
Oil and gas supplies could take months to return to normal after Iran deal, energy experts say
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High oil and gasoline prices and energy supply problems won’t be solved overnight, despite an agreement to end the Iran war and open the Strait of Hormuz announced Sunday.
Key facts
- It’s going to take time for people to feel comfortable and for insurance to be in place … particularly to get people on the ground to restart some of these assets,” said Daniel Evans, global head
- In addition, some producers in the Middle East paused extracting oil from the ground, known as a shut-in, when they ran out of storage space — It will likely take months before energy companies can resume operations to the point of meeting the world’s demand, according to energy experts
- Ships loaded with crude oil have been stranded in the Persian Gulf for more than three months, unable to safely travel through the waterway, through which about a fifth of the world’s oil
Summary
It will likely take months before energy companies can resume operations to the point of meeting the world’s demand, according to energy experts. Ships loaded with crude oil have been stranded in the Persian Gulf for more than three months, unable to safely travel through the waterway, through which about a fifth of the world’s oil and gasoline supplies typically traveled before the war began. “It’s going to take time for people to feel comfortable and for insurance to be in place … particularly to get people on the ground to restart some of these assets,” said Daniel Evans, global head of fuels and refining research at S&P Global Energy.