Logistics are the biggest obstacle to the oil market returning to normal; after reaching an agreement, normalcy can only be restored early next year.
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⑴ Institutional analysts stated that the oil market reflects the growing belief that an agreement to end the US-Iran conflict is close to being reached, but logistics remain a major obstacle to returning to normal. ⑵ If an agreement is reached within the next two weeks, the entire oil market and the petrochemical market along the industrial chain will not reach some degree of normalcy until early next year, as tankers queued up in the Persian Gulf all seek to enter at the same time. ⑶ Against the backdrop of producers urgently needing to clear full storage tanks, large vessels may be at the front of the queue, leading to competition at the start, but order must be quickly restored.
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