Hormuz Oil Transfers Hit Record Heights as Conflicts Persist
A new system of ship-to-ship transfers is keeping oil flowing through the Strait of Hormuz, despite ongoing regional conflicts. The system, which has become a vital lifeline for Gulf producers, cuts the distance any one ship must travel and reduces the risk of transit.
According to Kpler data, exports through Hormuz have reached around 6.5 million barrels per day (bpd) so far in September, the highest since the brief spike after the June ceasefire.
The emergence of this floating logistics network has helped prevent a severe supply shock, but it comes at a steep price. Benchmark freight rates for a very large crude carrier (VLCC) transporting Gulf crude to China have surged in recent months to above $30 per barrel, by far the highest level on record.