OPEC+ Loses Oil Market Sway to China Amid Iran War, Hormuz Blockade

The ongoing Iran war has severely eroded OPEC+'s ability to influence global oil markets, with its share of world output falling to 40% in July. The blockade of the Strait of Hormuz has constrained multiple producers, rendering OPEC+'s output decisions largely ineffective. Instead, a steep decline in Chinese crude imports, down 400 million barrels year-on-year, has become a primary price driver, positioning China as the market's "swing demand centre." This shift in oil market dynamics could lead to increased volatility in crude prices, potentially impacting Pakistan's import costs and the USD/PKR exchange rate, while also influencing global inflation and gold's safe-haven appeal.

بحوالہ / Source: www.brecorder.com