Hormuz Oil Flows Soar, But Prices Keep Rising

Crude oil prices continued their upward trend on Tuesday, reaching new heights despite improved oil flows through the Strait of Hormuz. According to reports from Kpler, daily oil flows out of the strait have increased to 12.8 million barrels since September, exceeding expectations.

The higher volumes, however, rely heavily on workarounds such as ship-to-ship transfers and 'dark mode' tanker traffic, which are less efficient and more costly than normal operations. These methods have contributed to the upward momentum in oil prices, with Brent crude trading at $107.37 per barrel and West Texas Intermediate at $94.31 per barrel.

Tanker rates are running at record highs, adding to the cost burden of exporting crude oil out of the Middle East. Maritime traffic is also being rerouted from the Red Sea to the Cape of Good Hope in southern Africa, making journeys longer and more expensive.