The blockade of the Strait of Hormuz reduces oil supply by 11 million barrels a day

The International Energy Agency estimates that the closure of the Strait of Hormuz has led to a drop in oil production of 11 million barrels per day. This is greater than the combined impact of the two oil crises of 1973 and 1979, even though non-OPEC supply has increased considerably since then. As for gas, the Ras Laffan liquefaction facilities in Qatar, which are currently shut down, account for 20% of global LNG production. Two of the 14 trains have been damaged, representing a production loss of around 18 billion cubic metres of LNG per year, with the restart of the two trains likely to take between three and five years. Although Europe relies on Qatari gas for only 4% of its supplies, the impact on gas prices is considerable, with prices set to almost double by 2026 since the start of the war.