Covert Persian Gulf Shipments Keep Oil Prices Stable

Despite ongoing tensions in the Persian Gulf, Middle Eastern oil producers have increased covert shipments through the Strait of Hormuz to maintain stable supplies and prevent a severe global supply shortage. According to Bloomberg, the volume of these shuttle transfers exceeds 4 million barrels per day, helping to keep Brent crude prices between $80 and $90 per barrel in August.

The exporters employ a ship-to-ship transfer scheme in the Gulf of Oman off Oman's coast to transport oil without revealing their cargo. Vessels cross the Strait of Hormuz with their transponders turned off to protect themselves from attacks, which have already resulted in 23 Adnoc vessels being targeted since the start of the conflict.

Abu Dhabi National Oil Co. (Adnoc), the UAE's state-owned oil giant, confirmed its intention to continue shipments despite the ongoing threat and highlighted the risks to people and infrastructure. 'Like other energy companies in the region, we continue to bear the direct consequences of unprovoked attacks on our people, our ships and our facilities, attacks that place employees, contractors and seafarers at increased risk while disrupting critical energy flows,' Adnoc said.