A key oil supply valve from the Middle East that involves shuttle transits through the Strait of Hormuz is continuing to function in the face of a recent spate of attacks.
Satellite images showed vessels conducting cargo transfers outside of Hormuz, in an indication that some tankers are continuing to cross the waterway dark. A total of 12 such switches were seen along a stretch of water that spans more than 100 kilometers (62 miles) of the coasts of Oman and the United Arab Emirates on Monday, according to data from the European Union’s Sentinel 2 satellite.
At least four outbound supertankers carrying eight million barrels of crude reappeared after transiting Hormuz since Saturday, according to vessel-tracking data compiled by Bloomberg, as well as Kpler and Vortexa figures. Some of those vessels have historically engaged in shuttling, while others could sail on to refineries elsewhere in the world.
The shuttling and transfers of barrels are providing a vital lifeline for global energy markets during the ongoing tensions in the region, and helping to restrain prices. At times, millions of barrels a day have been escaping through the waterway, easing the supply losses to global markets caused by the conflict.
It’s not without risk, though. The United Arab Emirates’ main oil company, among the most active in getting oil out through Hormuz during the war, said late last week that 15 of its ships had been attacked during the conflict. Another vessel was hit at the weekend, after that statement was published.
The shipping arm of state giant Abu Dhabi National Oil Co. said on Tuesday that it posted significantly higher earnings in the most recent quarter due to “additional services provided to deliver energy from the UAE to the world.” High freight rates also helped boost profits.
Many of the vessels escaping Hormuz are doing so using a route that hugs Oman’s coastline. Such ships are generally receiving assistance from the US military while they transit.
The status of Hormuz has been a sticking point in efforts to end the Iran war. Tehran has insisted it must have authority over which vessels pass through Hormuz, and wants to impose tolls. The US, meanwhile, has enforced a blockade on Iranian ships to disrupt flows.
The continued attacks on shipping mean that there’s still a relatively limited pool of shipowners willing to enter the Persian Gulf. The result has been a surge in oil tanker earnings, which are once again near $500,000 a day on the benchmark route.