Over the past five months, the Strait of Hormuz has been closed for extended stretches of time, disrupting roughly 10 to 15 million barrels of oil supply each day. It is the biggest energy supply shock in history, but global energy markets are defying historical expectations. Despite lost production and heightened geopolitical instability, crude oil prices are far below the catastrophic levels many analysts predicted early on. But beneath the headline numbers, the broader energy system tells a far more complicated story. Refining margins have spiked to unprecedented levels, global coal consumption is pacing toward a new record high, and the ways energy moves around the world are changing in real time as the crisis continues to unfold. So, why hasn&#x27;t this massive disruption triggered a full-blown global economic crisis? What role are China&#x27;s massive strategic stockpiles, shifting demand patterns, and the ongoing energy transition playing in dampening the shock? And what are the long-term security implications for global oil refining, shipping chokepoints, and future LNG infrastructure? Today on the show, Jason Bordoff talks to Bloomberg opinion columnist Javier Blas about how the strait closure and Iran war have impacted global energy markets so far. Prior to joining Bloomberg in 2015, Javier held a number of roles at the Financial Times, including Africa editor and commodities editor. He is also the co-author of The World for Sale: Money, Power and the Traders Who Barter the Earth&#x27;s Resources. Credits: Hosted by Jason Bordoff and Bill Loveless. Produced by Mary Catherine O&#x27;Connor, Caroline Pitman, and Kyu Lee. Engineering by Gregory Vilfranc.

Javier Blas on Lessons from Closing Hormuz (So Far)

Columbia Energy Exchange

[SPEAKER_00] The price of gasoline has gone up, the cost of living has increased a bit, but nothing similar to what we thought. To me, that is the most remarkable aspect of this crisis. I mean, has it been a crisis? Yes. We are still losing more than 10 million barrels a day of production. And at the same time, looking at the market today, will I say that we are in a crisis mode? Probably not. But three years ago, prices were similar to today, and it was just a normal day in the market.

[SPEAKER_01] Five months into a major Middle East crisis that has shut down the Strait of Hormuz for extended stretches and disrupted anywhere between 10 and 15 million barrels a day of oil supply, global energy markets are still defying historical expectations. Despite all the lost production and the heightened geopolitical instability, as of late July, crude oil prices are hovering in the mid-80s,

[SPEAKER_01] far below the $150 or $200 per barrel catastrophic scenarios many analysts had predicted early on. But beneath that headline number, the broader energy system tells a more complicated story. Refining margins have spiked to unprecedented levels, global coal consumption is headed toward a new record high, and the ways energy moves around the world are changing in real time as the crisis continues to unfold.

[SPEAKER_01] So why hasn't this massive disruption triggered a full-blown global economic crisis? What role are China's massive strategic stockpiles, shifting demand patterns, and the ongoing energy transition played in dampening the shock? And what are the long-term security implications for global oil refining, shipping choke points, or the future of LNG infrastructure? This is Columbia Energy Exchange,

Javier Blas on Lessons from Closing Hormuz (So Far)

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Javier Blas on Lessons from Closing Hormuz (So Far)

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.