Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS\/Hamad I Mohammed<\/p>\n
Hormuz Oil Flows Creep Higher as More Supertankers Exit<\/p>\n
By\u00a0Alex Longley, Weilun Soon and Julian Lee (Bloomberg) \u2013 The number of supertankers hauling unsanctioned oil through the<\/p>\n
has shown signs of rising in recent days, offering limited relief to an oil market that\u2019s suffered the largest supply disruption in history.<\/p>\n
Four ships each hauling 2 million barrels of mostly-Iraqi crude have exited since May 10 \u2014 a rate close to 2 million barrels a day \u2014 according to vessel tracking data compiled by Bloomberg. Still, prior to the war, there were about 20 or so tankers of various sizes crossing the waterway daily.<\/p>\n
Oil traders are monitoring Hormuz flows closely because the blockage of the waterway has already cut about a billion barrels from global supply. While shipments from countries other than Iran have crept up, those from the Islamic Republic have slumped sharply since an American blockade.<\/p>\n
Hormuz has remained largely blocked since the<\/p>\n
began in late February and has been subject to an international diplomatic arm wrestle ever since.<\/p>\n
Iran earlier this month laid out an updated process for ships wanting to cross Hormuz that involved dealing with a body called the<\/p>\n
Persian Gulf Strait Authority<\/p>\n
. At the same time, the US has maintained a blockade, from the edge of the Gulf of Oman, on Iranian ports.<\/p>\n
That has slowed maritime traffic in the region, though some vessels have been able to cross thanks to agreements between governments. Still, while a handful of tankers have been able to escape, it\u2019s less clear whether they\u2019ll be willing to return given the risks to shipping.<\/p>\n
In recent weeks, some commercial ships have crossed with their satellite signals off, meaning it\u2019s possible the number increases down the line once those vessels re-emerge away from the Middle East. In total 38 vessels of all kinds \u2014 not just oil tankers \u2014 have crossed Hormuz in both directions over the past seven days, three times as many as in the week to May 9. Most of those tranisted without signaling until they reach the Gulf of Oman.<\/p>\n
\u201cThere\u2019s been an increase but the levels are so low that it won\u2019t make much of a difference,\u201d said Georgios Sakellariou, a freight analyst at Signal Maritime. \u201cThe major issue is that even if all the tankers inside leave, new ones won\u2019t be entering anytime soon.\u201d<\/p>\n
Of the four supertankers that departed with their signals on, three loaded crude oil in Iraq. The other is carrying cargoes from the United Arab Emirates and Kuwait, the vessel tracking data show.<\/p>\n
Iran said on Thursday that it is now allowing Chinese ships to pass the Strait of Hormuz following discussions with the country\u2019s foreign ministry. A day earlier, the supertanker<\/p>\n
became the third Chinese VLCC to cross the waterway.<\/p>\n
There\u2019s been a similar trend in other markets too, with a series of very large gas carriers<\/p>\n
to the number of crossings in recent days.<\/p>\n
Tracking the number of ships crossing Hormuz has been complicated by the fact that some vessels have transited while switching off their satellite transponders. Last month, the boss of commodity trader Mercuria Energy Group said the company has been able to get vessels out of the waterway, but declined to elaborate on how.<\/p>\n
Middle Eastern oil companies, including Saudi Arabia Aramco Trading Co. and the UAE\u2019s state-owned Abu Dhabi National Oil Co. have also moved crude cargoes through the waterway since it was closed, people familiar with the situation\u00a0said\u00a0last week.<\/p>\n
\u00a9\u00a02026\u00a0Bloomberg L.P.<\/p>\n