Energy market executives expect traffic through the Strait of Hormuz to eventually normalize, although most believe it will take time, according to an update to the Federal Reserve Bank of Dallas’ quarterly survey published April 23. Of the executives surveyed (see chart below), 20% expect traffic through the strait to return to normal levels during May, 39% expect recovery by August, 26% by November and 14% later than that.
The data was collected April 15-20; 120 oil and gas firms responded. Of those, 78 were exploration and production firms, and 42 were oilfield services firms. The survey also included questions about the future of U.S. oil production, expected changes in shipping costs from the Persian Gulf, and how much crude oil production currently shut-in by the strait's closure is likely to come back online.
