Hormuz Risks Ease, But Logistics Costs Soar on Oil Exports
Natural gas and oil exports from Saudi Arabia have begun to recover as diplomatic efforts ease concerns over tanker traffic through the Strait of Hormuz. According to Reuters, exports have increased to around 6.5 million barrels per day, although logistics costs on certain routes have risen to $30 per barrel.
The situation remains complex, with many oil tankers not broadcasting their locations, making it difficult to track exactly how much oil is being transported through the strait. Estimates suggest that about 34 million barrels of oil passed through the strait last week.
QatarEnergy has stated that its LNG output is at a 'very minute' volume due to the ongoing situation in Hormuz, and without a resolution, Qatar could further restrict LNG output, delaying infrastructure and expansion projects.
The US is expected to increase oil exports as a result of the tight supply and demand imbalance. Natural gas prices remain range-bound, with a slight bias to the downside.