CITIC Securities Cites Oil Supply Risks as Strait of Hormuz Closure Extends On June 9

CITIC-0.49%

According to CITIC Securities research published by Jin10 on June 9, the Strait of Hormuz has been closed for weeks, forcing additional oil wells offline and risking permanent production capacity losses. U.S. inventory wells and new drilling counts have hit record lows, signaling that sustained high U.S. crude production may not be sustainable.

The report indicates that amid prolonged Middle East tensions, the market is repricing forward oil prices upward and faces potential inflation risks as supply dynamics shift toward Middle Eastern producers.

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