Gulf oil output could rebound within months if Strait of Hormuz reopens, according to Goldman Sachs research. The investment bank estimates Gulf production has fallen 14.5 million barrels per day, representing a 57 percent decline from pre-war levels. A swift recovery is possible if there are no new strikes on oil infrastructure and the critical waterway fully reopens in coming months. However, complete recovery to pre-war production levels may take considerably longer. Key constraints to recovery include pipeline capacity, availability of empty tankers to clear stored oil, and mobilization of materials and workers for field repairs. Goldman notes that available empty tanker capacity in the Gulf has dropped approximately 50 percent since the conflict began. Historical data shows the Strait normally handles 20 million barrels daily, with peak flows reaching 23.3 million barrels.
