How the conflict in Iran is reshaping how the world sources its oil
The conflict in Iran and the blockage of the Strait of Hormuz since February 28 have halted oil exports from the Persian Gulf, disrupting about 20% of global supply. In response, North American oil exports, particularly from the U.S. and Canada, have surged to meet global demand, reaching record levels. This shift has altered tanker routes and destination patterns, with more crude now flowing to Asia and away from Europe.
- ▪The blockage of the Strait of Hormuz has stopped oil and gas exports from Persian Gulf producers, cutting off approximately 20% of global supply.
- ▪U.S. crude oil exports hit a record 6.4 million barrels in the week ending April 24, nearly doubling since late March.
- ▪Canadian exports from Vancouver rose 60% in April compared to February, with increased shipments to South Korea and Singapore.
- ▪Irving Oil's refinery in Saint John saw a 16% month-over-month drop in crude imports in April amid shifting supply sources.
- ▪Brent crude reached a wartime high of $126 a barrel, while West Texas Intermediate and Western Canadian Select traded at lower prices of $102 and $82, respectively.
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Open this photo in gallery:Ships and boats in the Strait of Hormuz on Friday. The blockage of the strait has forced a virtual halt to oil and gas exports from producers in the Persian Gulf.Stringer/ReutersShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountOil exports from North America are surging amid the conflict in Iran, hitting record highs in the United States as countries that usually rely on barrels currently blockaded in a crucial shipping channel scramble to find alternate supplies. The blockage of the Strait of Hormuz since the war began on Feb. 28 has forced a virtual halt to oil and gas exports from producers in the Persian Gulf, choking off around 20 per cent of the world’s supply.
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