Gulf Oil Producers Buy Ships at Premium Amid Hormuz Tensions
Gulf oil producers are buying ships at a premium to secure control over their exports as tensions in the Strait of Hormuz disrupt global markets.
Abu Dhabi's state-owned oil company, Adnoc, spent $1.3 billion on six very large crude carriers (VLCCs) and five very large gas carriers in a move that reflects the UAE's push for greater autonomy across the energy value chain.
'The real value of these vessels is not just their carrying capacity but the security and flexibility they provide,' said Neil Quilliam, a Middle East expert at Chatham House. 'Adnoc is effectively paying a premium to guarantee access to markets when others may be unwilling to take on the risks.'
Quilliam noted that this investment fits with Abu Dhabi's broader energy strategy following its departure from Opec.