Loss of Iranian Oil Reduces Spare Capacity Cushion, Says Sanford C. Bernstein’s Beveridge

The video discusses recent inventory reports showing strong builds and their impact on oil prices. It highlights the driving season's effect on crude runs and potential supply disruptions from OPEC due to Iranian sanctions. Saudi Arabia's production capacity is examined as a replacement for Iranian oil, while Asian importers face pressure to shift away from Iranian barrels. The video also explores methods to circumvent sanctions, such as round tripping, and the challenges faced by major oil players in complying with U.S. sanctions.

What is the expected impact on crude runs as we move into the driving season?

• No change in crude runs

• An increase in crude runs by close to a million barrels a day globally

• A decrease in crude runs globally

• A decrease in crude runs by close to a million barrels a day globally

How does Saudi Arabia's production capacity affect the market in light of Iranian sanctions?

• It can replace Iranian barrels, reducing spare capacity

• It increases the spare capacity cushion

• It cannot replace Iranian barrels, leading to a shortage

• It has no impact on the market

What is the likely response of Asian importers to the U.S. sanctions on Iranian oil?

• They will continue to import Iranian oil

• They will shift to alternative suppliers

• They will stop importing oil altogether

• They will increase imports from Iran

What is one method mentioned for circumventing U.S. sanctions on Iranian oil?

• Directly importing from Iran

• Using tankers to disguise the origin

• Increasing domestic production

• Buying oil from other sanctioned countries

What is the potential impact of U.S. policies on Iranian oil exports?

• Exports will increase significantly

• Exports will remain the same

• Exports could reduce to around 600,000 barrels a day

• Exports will go to zero immediately