Morgan Stanley: Oil Buffers Could Run Out Before Hormuz Reopens

Most of the market buffers that have stopped oil futures prices from rallying to record highs could vanish before the reopening of the Strait of Hormuz, which puts the market in a “race against time,” according to Morgan Stanley. Reduced overall crude imports into China and soaring exports from the United States have so far managed to partly offset the massive supply disruption due to the closure of the Strait of Hormuz. However, if the chokepoint remains closed through the end of June, these buffers will have been exhausted and result…