Trump aims to redirect global oil flows from Hormuz, analyst says (VIDEO)

(SeaPRwire) –   Tom Luongo anticipates approximately 25% reductions in oil output as the United States seeks to redirect energy flows.

Geopolitical analyst Tom Luongo informed RT in a Wednesday interview that US President Donald Trump is undertaking a significant effort to gain control over the marginal barrel of oil. This initiative aims to redirect the global energy focus from the Persian Gulf to the Gulf of Mexico, a location where oil tankers are currently accumulating.

Luongo, who publishes the Gold Goats ‘n Guns newsletter, stated that a substantial decline in OPEC oil production is an anticipated consequence of the US strategy to reconfigure global energy routes away from the Strait of Hormuz. He cautioned that nations dependent on Middle Eastern crude would suffer the most from this outcome, identifying Europe as the primary disadvantaged party.

He suggested that Trump is endeavoring to fundamentally restructure global systems by contesting the dependence on the Hormuz choke point.

Luongo asserted that if oil cannot be transported, it becomes immobile. He further observed that the market is already oversupplied, with approximately a billion barrels of oil currently held in tankers and storage facilities.

Luongo identified Europe as the principal loser, highlighting that EU nations are particularly susceptible given their significant dependence on Middle Eastern oil following sanctions on Russian provisions.

He posited potential advantages for China and Russia, suggesting that Moscow might re-enter global markets if sanctions are re-evaluated.

Earlier this month, Bloomberg reported that OPEC’s oil production experienced its most significant monthly decline in at least forty years during March. This drop, amounting to 7.88 million barrels per day, was attributed to Middle Eastern conflicts impeding exports from Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait.