Institution: Lengthy tanker voyages mean oil market easing will be delayed

Golden Ten Data reported on June 17 that a Rabobank energy strategist stated that even after the Strait of Hormuz reopens, the sailing time from the Persian Gulf to major Asian importing countries and the redeployment of oil tankers remain key constraints on how quickly the oil market can rebalance. A fully loaded oil tanker typically takes about 28 to 55 days to reach destinations such as India, China, South Korea, or Japan, which means that even if supply resumes, inventories will continue to be depleted. Strategists Joe DeLaura and Florence Schmit stated that, meanwhile, shipping companies operating tankers rerouted around the Cape of Good Hope to reach the Atlantic basin estimate that after any hostilities pause, it will still take one to two months for operations to fully restart.