Hormuz Ship Traffic Slows Amid Tensions
The Strait of Hormuz has seen a significant decrease in ship traffic over the weekend, with only four vessels crossing on Sunday compared to eight the previous day. The data from LSEG shows that at least three oil products tankers and one Very Large Crude Carrier have entered the strait since Friday to load oil.
The Strait of Hormuz is a critical chokepoint for global oil trade, handling about one-fifth of the world's exports. However, with the ongoing tensions between the US and Iran, shipping traffic has decreased significantly.
No liquefied natural gas (LNG) tankers have been visible passing through the strait since Thursday. The combined 10-day moving average of laden LNG transits fell to just 0.2 cargoes per day by July 15 from roughly 0.8 cargoes per day in late June, according to S&P Global Energy data.
Despite the disruption to outbound shipping, LNG production and vessel loadings at Qatar and the United Arab Emirates have continued at a relatively robust pace. This has led to a growing inventory of LNG aboard tankers waiting inside the Gulf, with seven laden Qatari LNG carriers holding around 0.57 million metric tons as of mid-July.