BlockBeats News, March 15th, The Kobeissi Letter cited JPMorgan data indicating that the G7 coordinated release of strategic oil reserves can only deliver approximately 1.2 million barrels of oil per day.
In historical context, the peak emergency release was around 1.4 million barrels per day. However, given the ongoing modernization of oil fields and lower inventories, the operational flexibility of the U.S. oil reserve may be below the 2022 level of 1 million barrels per day.
Meanwhile, due to the blockage of the Strait of Hormuz, around 16 million barrels of crude oil are stranded in the Persian Gulf each day. The release of 1.2 million barrels per day can only cover 7.5% of the daily 16 million barrels shortfall. Analysis indicates that emergency reserves can only buy time but cannot make up for lost supply or address supply bottleneck issues.
