Middle East Crisis Oil Market

Oil price worries transport: “Risk of a wave of bankruptcies”

The haulage industry could be hit by a wave of bankruptcies if the increases in petrol and diesel prices are prolonged. This is what industry representatives have told DI.

For many transport companies, the rising fuel prices mean a greater risk of liquidity problems. The ability to deal with such problems depends on the fuel companies’ willingness to offer increased credit.

– In the short term, it will be tough for the haulage companies, who may find it difficult to pay their fuel bills before they have had time to compensate those who buy transport, says Ulric Långberg, head of social policy at the Swedish haulage company.

Oil can bypass the Strait: “Anything extra helps”

Up to seven million barrels of oil a day could theoretically be led out of the Persian Gulf via pipelines that run through Saudi Arabia and the United Arab Emirates. This could make a difference in the current situation where oil prices are soaring as a result of the sea route through the Strait of Hormuz being effectively closed.

– Anything extra you can get out helps, says Thina Saltvedt, energy analyst at Nordea, to TT. 

Analyst: Market is starting to price in an oil crisis

Oil prices surged to over $100 on Monday and are now almost 70 percent higher than at the turn of the year. There is no indication that the fighting in the Middle East is about to calm down, and the continued disruptions in the Strait of Hormuz have shaken the oil market.

– The longer the strait remains closed, the more production will be shut down, which requires significantly higher prices to dampen demand, says UBS analyst Giovanni Staunovo to Bloomberg.

The storage facilities around the Persian Gulf are soon full, which means that over 4 million barrels of oil a day could be shut into the gulf by the end of next week, according to JPMorgan's calculations.

Samuel Ciszuk, energy market analyst at ELS Analysis, tells SVT Nyheter that he does not believe that the price peak has been reached.

– The market has started to price in an oil crisis, simply put, a supply crisis. There is an extremely high level of uncertainty right now.