A US tanker called the Otis just unloaded 910,000 barrels of Texas light oil at a refinery near Tokyo.
The route avoided the Strait of Hormuz entirely. Through the Panama Canal, across the Pacific.
This is the moment energy logistics started rerouting around the Iran war.
For 50 years, Japan has imported the majority of its oil from the Persian Gulf. Saudi Arabia and the UAE alone account for over 80% of Japanese crude imports historically. Every barrel passes through the Strait of Hormuz.
When the strait becomes a war zone, every Japanese refinery becomes a single point of failure.
The US replacement supply chain is the response.
Texas Permian production is now 6.4 million barrels per day. Capacity exists to redirect a meaningful portion to East Asia via the Panama Canal route. The transit time is 22–25 days vs the 18-day Hormuz route. Slightly longer, dramatically safer.
The economics work because Permian is now competitively priced with Saudi Light at the same East Asian refineries. WTI
https://i.redd.it/bnruhmlr1oxg1.jpeg
Posted by ConfusionDue7678
6 Comments
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What does this mean for my petro plastics stocks ?
Iran closing the strait is just sending sales on over to the US.
Uh, wasn’t the Panama Canal *already* highly overloaded with transits and suffering from severe water stress due to climate change? Like it already couldn’t handle the regular level of traffic. Routing even more traffic through it doesn’t sound like a long term solution, it barely sounds like a short term solution. It’s just gonna drive up transit costs through the canal and cause shipping disruptions for every product that uses the canal.
We should do this but this was is the stupidest thing an American President has ever done. Get ready for your ten dollar a gallon gasoline
Dumping the SPR into the global market.