Game-changer? Oil dropped on the huge headline that the United States Navy has escorted an oil tanker through the Strait of Hormuz:
US NAVY ESCORTED AN OIL TANKER THROUGH THE STRAIT OF HORMUZ
WRIGHT’S POST ON HORMUZ OIL TANKER APPEARS TO HAVE BEEN DELETED
Newsquawk notes right away crude complex extends on recent weakness, lifting stocks to fresh highs, as US Navy escorted oil tanker through the Strait of Hormuz. This was quickly met with White House ‘confirmation’ (of sorts), in a now deleted tweet by Energy Secretary Chris Wright:
“President Trump is maintaining stability of global energy during the military operations against Iran. The U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets,” Energy Secretary Chris Wright announced.
This key development – if true – could begin releasing millions of barrels of Middle Eastern oil currently stranded inside the Persian Gulf has dramatically reintroduced US leverage over the messy Strait of Hormuz crisis.
At roughly 20 million barrels per day, and with a single Suezmax tanker carrying about 2 million barrels, the US would only need to escort around ten ships per day. However, it could prove a tall order given the missiles drones currently flying over the region.
On the bearish side concerning this military escort plan, apparently in the making, the thing is that one well-placed ballistic missile or drone blowing up a US ship and oil ramps back up at whiplash.
We await clarification from the White House and Secretary Wright.
developing…
Loading recommendations…
