Gulf Oil Producers Boost Hormuz Flows to Pre-War Levels
The two countries, Kuwait and Qatar, have managed to increase their oil shipments through the Strait of Hormuz to 70 percent of pre-conflict levels, according to traders. This surge in crude exports is a significant development, as it keeps global prices in check.
Kuwait and Qatar, which exported a combined 2 million barrels a day of oil before the outbreak of the Iran war, have been working together to get their shipments back on track. The two countries have used ship transfers in the Gulf of Oman, a tactic known as shuttling, to move their oil through the waterway.
Saudi Arabia Joins Hormuz Oil Flows
Saudi Arabia has also joined the list of gulf producers exporting large volumes of oil through the Strait of Hormuz. This development is significant, as it shows that even Saudi Arabia, which was previously relying more on exporting through other routes, is now using Hormuz to move its oil.
The increasing volumes of oil flowing through Hormuz come as Washington and Tehran remain in a stalemate over the Iran war. Global benchmark Brent oil is trading near $87 a barrel, down from above $120 in late April.
Risky Business: Oil Tankers Transiting Hormuz
Despite the risks involved, Kuwait and Qatar have been able to get their oil through Hormuz by using ship transfers. This tactic involves moving oil onto other ships that are willing to take the risk of transiting the waterway. The so-called shuttle trade has evolved because few vessels are willing to take the risk of transiting Hormuz.
Kuwait, which has a fleet of 11 supertankers, has mostly used its own vessels to move its oil through Hormuz. The majority of those very large crude carriers haven’t issued any satellite signals for more than two months, ship-tracking platforms show, suggesting they have turned their transponders off or gone dark.
Qatar’s Oil Carried by Commercial Tanker Fleet
Qatar’s oil has generally been carried by the commercial tanker fleet, according to traders. TotalEnergies SE said this week it was one of the biggest carriers of Qatari barrels.
The increasing volumes of oil flowing through Hormuz are a significant development in the global energy market. As the situation continues to unfold, it will be important to monitor the flow of oil through this critical waterway.
Original Article: Kuwait, Qatar Cargoes Boost Hormuz Oil Flows — Rigzone