JPMorgan: Tanker embargo will reduce daily crude oil supply by 12 million barrels

Due to a two-week disruption in oil tanker transportation through key Middle Eastern waterways, the shortage in the spot market will be exacerbated. The bank stated: "Commercial oil tanker transportation remains extremely limited, with most vessels currently belonging to Iran and possibly heading to China." The report added that although cargoes that left the Gulf before the shutdown are still arriving at their destinations, new shipments have largely ceased. Supplies to Asia may run out next week, and shipments to Europe are likely to be interrupted next week as well. Expand