NEW YORK, April 9. /TASS/. The return of Persian Gulf countries to oil supply volumes before the start of the recent conflict in the Middle East may occur not earlier than in several months in the best case, CEO of Navigator Principal Investors Kyle Shostak told TASS.
"The buildup of supply levels by Persian Gulf countries to pre-crisis ones does not appear realistic to any extent because significant damage was inflicted to the oil infrastructure of these producers, and the Strait of Hormuz still does not let go 90-95% of pre-conflict traffic. This take place even despite the recent increase of the production level by limiting 206,000 barrels per day, announced recently by OPEC countries," Shostak said. "This is an overwhelming task for Persian Gulf countries at the moment. This will take place in several months in the best case on condition that free and non-discriminating traffic to both sides resumes," he noted.
The break in the form of the two-week ceasefire between the US and Iran "may end without even getting started," the investor says. "I estimate the probability of continuing hostilities as very high, including in the form of occupying Iranian islands in the strait and destroying physical infrastructure of Iran, as well as inflicting further pinpoint damage by Iran to the oil infrastructure of its neighbors," Shostak added.