Tom Luongo says production is expected to decline by about 25% as US aims to shift energy flows
US President Donald Trump is making “A major step toward controlling marginal barrels of oil,” Efforts to shift the world’s energy focus from the Persian Gulf region to the Gulf of Mexico, “Where oil tankers are now lined up,” geopolitical analyst Tom Luongo told RT in an interview on Wednesday.
He said the sharp decline in OPEC oil production is an expected result of the US strategy to reshape global energy flows away from the Strait of Hormuz. Luongo, publisher of the Gold Goats N Guns newsletter, warned that the impact would be hardest on crude oil-dependent countries in the Middle East, with Europe suffering the most.
According to him Trump is trying “Rearrange the world in some fundamental way” By challenging the dependence on the Hormuz Choke Point.
“If you can’t move the oil, it can’t go anywhere,” He said. Luongo said the market is already saturated. “We’re sitting on about a billion barrels worth of oil just sitting on tankers and storage facilities.”
Luongo said Europe is the primary loser, with EU countries most vulnerable due to their heavy reliance on Middle Eastern oil after sanctioning Russian supplies.
He claimed there could be benefits for China and Russia, and said Moscow could re-engage in global markets if sanctions are reconsidered.
Bloomberg reported earlier this month that OPEC oil output suffered its biggest monthly decline in at least four decades in March, falling by 7.88 million barrels per day as conflict in the Middle East reduced exports from Saudi Arabia, Iraq, the United Arab Emirates and Kuwait.
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