Gulf Producers Shuttle Over 4 Million Barrels a Day Through Hormuz as Brent Holds at $80-$90
Updated
Updated · Fortune · Aug 16
Gulf Producers Shuttle Over 4 Million Barrels a Day Through Hormuz as Brent Holds at $80-$90
3 articles · Updated · Fortune · Aug 16
Summary
Volumes moving covertly through the Strait of Hormuz are running above 4 million barrels a day, people familiar said, giving global markets a crucial supply lifeline as the Iran war drags on.
Brent has spent much of August between $80 and $90 a barrel because those dark shipments, along with pipeline reroutes, stockpile releases and weaker demand, have blunted fears of a $150 oil shock.
About 150 ships are now clustered off Oman awaiting cargo transfers from vessels crossing Hormuz with transponders off, versus roughly 40 in January; UAE, Iraq, Qatar and Kuwait are all using the system.
The trade remains dangerous: Adnoc said 23 of its vessels have been attacked since the conflict began, killing one crew member and injuring 20, while traders say delays, spills and unreported incidents still threaten flows.
Saudi Arabia has not yet moved large volumes this way, but 16 Bahri supertankers are now off Oman with capacity for 38 million barrels, signaling the kingdom may lean more on Gulf exports as Red Sea risks rise.