Capital Economics: Releasing reserves cannot replace the navigation of the Strait of Hormuz

Golden Ten Data reported on March 11 that Hamad Hussain from Capital Economics stated in a report that the release of strategic oil reserves by International Energy Agency member countries may somewhat ease the pressure on oil prices, but cannot replace the role of reopening the Strait of Hormuz. If the Iran conflict ends quickly, releasing 300 to 400 million barrels of reserves may be enough to fully offset the supply loss, but "the speed at which International Energy Agency member countries provide emergency crude oil to the market cannot simultaneously make up for the supply gap in the Middle East." He said: "This once again demonstrates that reopening the Strait of Hormuz is key to sustainably lowering energy prices."