Oil market absorbed war shock but buffers are running low
via Le Mauricien3 min read
The global oil market experienced its largest disruption in decades following the war in the Middle East, yet crude prices settled between $90 and $100 per barrel, lower than many anticipated. This was due to a combination of factors that cushioned the initial blow, though much of this capacity has now been utilized. The war effectively closed the Strait of Hormuz, cutting off approximately 20 million barrels per day of crude oil and refined products, which is a fifth of global consumption. Despite some redirection efforts by Gulf producers, only a fraction of lost volumes was offset. Refined product output, particularly diesel and jet fuel, also dropped significantly. By the end of May, over 1.1 billion barrels of crude had not reached the market, exceeding shortfalls seen in previous oil shocks. The global system absorbed this disruption through three main shock absorbers: demand compression, especially in Asia, as higher prices reduced consumption and economies shifted to alternatives; increased production outside the Gulf, notably from the United States, Venezuela, Guyana, and Russia; and the drawdown of global inventories, including commercial stocks in China and strategic reserves. While a US-Iran framework agreement to reopen the strait initially lowered prices, uncertainties remain regarding the full restoration of navigation and the time it will take for shipping and insurance confidence to return. Industry estimates suggest it will take two to three months for signi
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This summary was AI-generated from a story originally published by Le Mauricien.
During a bail application hearing for Malagasy businessman Mamy Ravatomanga, his lawyer, Me Kushal Lobine, accused the Financial Crimes Commission FCC of misleading the court and employing "delaying tactics." Ravatomanga appeared via videoconference from Melrose high-security prison. The FCC opposed bail, citing concerns about Ravatomanga's lack of a fixed place of abode in Mauritius, a point previously upheld by the Supreme Court on May 26, confirming a December 30, 2025, decision by the Bail and Remand Court. The current application addresses points raised by the Supreme Court. An FCC investigator stated that checks with the owner of a Belle-Vue Harel residence, where Ravatomanga's daughter claimed to have a rental agreement to house her father, indicated the lease expired on August 26, 2026. However, under cross-examination, the investigator admitted unawareness of a June 29, 2026, correspondence from Me Lobine to the FCC. Me Lobine asserted this correspondence, sent three weeks prior, included an affidavit from the property owner confirming the lease had been renewed for an additional two years, expiring on August 26, 2028, and that the owner had no objection to Ravatomanga residing there. Me Lobine accused the FCC investigator of providing erroneous information and acting in bad faith, and the FCC of using delaying tactics by taking three weeks to clarify its position and requesting further adjournment. He also highlighted his client's precarious health and safety concer
Mauritius has initiated the first phase of the Tax Inspectors Without Borders – Criminal Investigation TIWB-CI program in Plaine Magnien. This international collaboration aims to enhance the capabilities of Mauritian authorities in detecting, investigating, and prosecuting tax offenses through specialized technical assistance. The initial phase, running from July 20 to 24, will allow the MRA, the Registrar of Companies, the Ministry of Industry, SMEs and Cooperatives, and the Bank of Mauritius to assess their current mechanisms for combating tax crimes. This assessment will help identify any shortcomings and strengthen their investigative frameworks. The Mauritius Revenue Authority MRA benefits from this capacity-building program, which is jointly implemented by the Organisation for Economic Co-operation and Development OECD, the United Nations Development Programme UNDP, the African Tax Administration Forum ATAF, and the World Bank.
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