“ABOUT HALF OF the world’s total oil production of nearly 90 million barrels per day is transported over water,” write US Funds analysts.
At some point, almost all of this seaborne oil passes through one of seven chokepoints, or a narrow body of water.
At these chokepoints, oil tankers face various risks ranging from heavy traffic to piracy. Any disruption could lead to volatility in oil prices.
US Funds recently took a close look at these seven chokepoints. We highlight some of their findings here.