Hormuz Oil Flows Recover as Crude Prices Dip

Crude oil prices dropped in early trading, though Brent crude managed to stay above the $100 mark. This decline followed a report from Kpler indicating that oil flows through the Strait of Hormuz have surpassed pre-war levels. Despite Houthi attacks on Saudi energy infrastructure and Iranian strikes on tankers, Hormuz traffic is nearing normalcy, according to Kpler.

At the time of writing, Brent crude was trading at $101.20 per barrel, while West Texas Intermediate (WTI) stood at $89.73. Both benchmarks showed gains from Friday, suggesting that some traders were awaiting stronger evidence of improved flows before reacting.

Kpler’s provisional data revealed that daily oil flows through Hormuz ranged between 19.5 million and 22.5 million barrels from September 27 to September 29. This represents a significant rebound from a month earlier, despite disruptions in Saudi energy infrastructure. The data also contradicts earlier reports that Hormuz flows remained below the ten-day moving average.

Additionally, liquefied natural gas (LNG) flows out of Hormuz have returned to pre-war levels, despite QatarEnergy’s force majeure on exports. Reports suggest that QatarEnergy is exploring emergency LNG purchases to fulfill long-term contracts, though full recovery to pre-war levels remains uncertain.