Organization: Strategic oil reserves may take several weeks to reach their destination.
To compensate for the losses caused by the interruption of supplies in the Strait of Hormuz, the emergency release of oil reserves may take several weeks to be loaded onto ships, and even longer to reach their final destination. Analysts from the energy consulting company Energy Aspects state that most countries' oil reserves require approximately two weeks to be released. According to the U.S. Energy Information Administration, strategic oil reserves stored in giant salt caverns along the Gulf coast can enter the market within 13 days of a presidential decision. Energy Aspects analysts told clients, "But shipping to Asia takes 45 days, which means that any exports of U.S. strategic oil reserves will not reach their required destinations in Asia until mid-May at the earliest." Several countries, including the U.S. and Japan, have announced that they will release approximately 400 million barrels of oil from their reserves. "The speed of release is more important, as it is not possible to release all of this oil at once," Energy Aspects wrote. The analysts added that the maximum rate of release in previous instances was 1.3 million barrels per day, which only compensates for less than one-tenth of the current supply disruption.
Latest

