Be prepared! Many countries of the world will be craving for oil from April, after Asia it is now the turn of America and Europe

Strait Of Hormuz Oil Crisis: Due to the closure of the Strait of Hormuz amid increasing tension in the Middle East and the ongoing military confrontation with Iran, the threat of energy crisis is looming around the world. According to the recent report of American financial giant JP Morgan, the coming month of April is going to be very scary in terms of oil supply. Due to the ongoing attacks between Iran, America and Israel, the movement of oil through this strategic route has come to a complete halt, the effect of which is now being felt in different parts of the world.

Asia and South-East Asia were hit the hardest

The report warns that Asia will be hit first and hardest by this crisis. Normally, oil shipments from the Persian Gulf take 10 to 20 days to reach Asia. Since the last oil tanker passed through the route on February 28 and those pre-war shipments are now almost gone, Asia will be the first to feel the supply pressure. Especially in South-East Asia, a huge decline of 41 percent month-on-month has been recorded in oil exports. Experts believe that now the challenge is not limited to oil prices only but it has become the problem of physical availability of oil in the market.

Increasing pressure in Africa and Europe

After Asia, its impact will increase in Africa from the beginning of April. Early signs of stress are visible in Kenya, where fuel is running short at the retail level, although Tanzania currently has adequate stocks. At the same time, Europe is likely to feel this shock by mid-April. However, Europe has a strong inventory buffer and alternative supply routes from the Atlantic Basin which will help it to some extent in fighting this crisis.

Challenges of America and California

In this global chain, America will be the last to be shocked because it takes about 35 to 45 days for oil to reach there from Gulf countries. According to JP Morgan’s report, America’s domestic production is very high, so it may not face material shortage in the short term, but the general public will definitely have to face high oil prices. The report specifically highlights California as the state most vulnerable to these supply chain challenges.

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Widespread impact of war in the Middle East

The closure of the Strait of Hormuz has become not just a regional issue but a global economic threat. If this route remains blocked for a long time, crude oil prices in the international market may skyrocket, leading to a huge increase in transportation and production costs. At present, the whole world is keeping a close eye on the possible changes in April and the status of oil stocks.