Output drops of around 25% are expected as the US aims to shift energy flows, Tom Luongo has said\u00a0<\/p>\n
US President Donald Trump is making \u201ca big move towards controlling the marginal barrel of oil,\u201d attempting to shift the world\u2019s energy focus from the Persian Gulf region to the Gulf of Mexico, \u201cwhere oil tankers are now lining up,\u201d geopolitical analyst Tom Luongo told RT in an interview on Wednesday.\u00a0\u00a0
\nA sharp drop in OPEC oil production is an expected result of US strategy to reshape global energy flows away from the Strait of Hormuz, he said. Luongo, publisher of the Gold Goats \u2018n Guns newsletter, warned the fallout would hit countries reliant on Middle East crude the hardest, with Europe being the biggest loser.
\nAccording to him, Trump is trying to \u201crewire the world in some fundamental way\u201d by challenging the reliance on the Hormuz choke point.\u00a0<\/p>\n
Read more<\/p>\n
Iran considering easing Strait of Hormuz restrictions \u2013 Reuters<\/p>\n
\u201cIf you can\u2019t move the oil, then it can\u2019t go anywhere,\u201d he said. The market is already saturated, Luongo added, noting \u201cwe are sitting on nearly a billion barrels worth of oil just sitting on tankers and storage facilities.\u201d
\nLuongo said Europe was the primary loser, with EU countries the most vulnerable due to their heavy reliance on Middle Eastern oil after sanctioning Russian supplies.\u00a0
\nThere could be upsides for China and Russia, he claimed, saying that Moscow could rejoin global markets when sanctions are reconsidered.
\nBloomberg reported earlier this month that OPEC oil production suffered its steepest monthly drop in at least four decades in March, falling by 7.88 million barrels a day as conflict in the Middle East throttled exports from Saudi Arabia, Iraq, the United Arab Emirates and Kuwait.<\/p>\n","protected":false},"excerpt":{"rendered":"
Output drops of around 25% are expected as the US aims to shift energy flows, Tom Luongo has said\u00a0 US President Donald Trump is making \u201ca big move towards controlling…<\/p>\n","protected":false},"author":1,"featured_media":33389,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-33388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t