Rich Dad Poor Dad: Financial Motivational book

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Welcome Readers! This Blog post is about review of book 'Rich Dad Poor Dad: Financial Motivational book’. Today I am going to tell you the story of two daddies of world famous writer Robert Kiyosaki. This is motivational Blog Post on book ‘Rich Dad Poor Dad’ written by world famous writer Robert Kiyosaki. This book explores differences in thinking of Rich and Poor personalities. This book underlines importance of financial literacy. What is ‘ Rich Dad Poor Dad ’? World famous writer Robert Kiyosaki had written this story in the bestselling book in the world called 'Rich Dad Poor Dad'. All over the world reading of this book is demanding. This book is the story of two fathers who have different views on money and investments. This book has changed the way people around the world think about money. In fact, many parents will find the concepts and points in this book are revolutionary and exaggerated. But keep in mind that in the present changing times, there is a need to pa...
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Strait of Hormuz: Importance in International Trade

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 Welcome Readers the blog post ‘Strait of Hormuz: Importance in International Trade’.  Here, we will examine the Strait of Hormuz, its significance for international trade, the movement of commodities over it, and its effects on Asian nations. Strait of Hormuz is only sea route that connects the Persian Gulf to the open ocean. Therefore it is therefore the most significant oil transit chokepoint in the globe.

Why shipping routes are important?

We must first evaluate the significance of maritime routes.
Maritime shipping is the most safe and inexpensive means to move commodities across international borders. It is also the most economical way to move things across continents by sea. One of the shipping routes is the Strait of Hormuz because the enormous amount of energy and commodities that go via this shipping channels in order to reach international markets.

                 AriyaBiz

Why Strait of Hormuz is important for International Trade?

Approximately 20–21 million barrels of crude oil, condensate, and petroleum products pass through the Strait of Hormuz every day, accounting for 20% of the world's petroleum consumption and more than 25% of all seaborne oil trade. That’s why this strait is known as the "Global Energy Lifeline." Leading OPEC producers, such as Saudi Arabia, Iraq, the UAE, Kuwait, and Iran, use it as their main export route. Twenty percent of the world's liquefied natural gas (LNG) comes from Qatar. For LNG coming from the Persian Gulf, there are essentially no other marine routes.
About one-third of the world's traffic in urea (fertilizer), aluminum, and agricultural goods transports via this Strait of Hormuz.
Nearby, 83% of LNG and 84% of oil travel across this strait to reach Asian economies.

China: China imports over 40% of its oil and 30% of its LNG through Hormuz, making it a major importer (45% of its oil across the Strait).
India: Highly reliant, with the strait handling between 50 and 55 percent of its imports of LNG and crude oil.
An estimated 75% and 60% of South Korea's and Japan's oil imports, respectively, come from the canal.

What happen if Strait of Hormuz gets closure?

The Strait of Hormuz is the only sea route available to Asian nations for the transportation of petroleum products. In the event that there is insufficient storage for oil that can no longer be exported through the strait, Middle Eastern petrol businesses may start to shut down significant oil production.

The following firms are in the Middle East petroleum sector:Massive state-owned National Oil Companies (NOCs), which hold the great bulk of world reserves, dominate the Middle East petroleum industry.
Saudi Arabia's Aramco
ADNOC, or Abu Dhabi National Oil Company (UAE)
Kuwait's Kuwait Petroleum Corporation (KPC)
20% of the world's LNG is supplied by Qatar Energy. Iraq National Oil Company (INOC) (Iraq)
Iran's National Iranian Oil Company (NIOC)
Petroleum Development Oman (PDO) (Oman) Bapco Energies (Bahrain)

The Strait of Hormuz is the only marine route available to landlocked export nations like Kuwait, Qatar, and Bahrain.
Alternatives to the Strait of Hormuz for Middle Eastern countries Saudi Arabia and the United Arab Emirates have constructed pipelines and other bypass infrastructure, but their combined unused capacity is estimated to be only 2.6 to 3.8 million barrels per day, a small portion of the usual 20 million flow.

During times of crisis, war risk insurance premiums can treble or quadruple, increasing the cost of a single trip by hundreds of thousands of dollars.

Shipping and Supply Chain Disruption

Global shipping companies like Maersk, MSC, Hapag-Lloyd, and CMA CGM are rerouting ships around the Cape of Good Hope, forcing them to take longer, more costly routes that increase transit times by weeks, and they have the ability to halt all operations in the area.

According to business analysts, closure Strait of Hormuz of might cause prices to rise above $100 or even $150 per barrel.

Conclusion

In conclusion, the possibility of a disruption in the Strait of Hormuz could lead to an increase in the price of oil worldwide.


@Team AriyaBiz

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