Hormuz Shipping Crisis Eases as Qatar and Kuwait Restore Oil Flows

Qatar and Kuwait have made significant strides in restoring their crude oil exports through the Strait of Hormuz, reaching 70% of pre-war levels. According to anonymous traders, the two countries began shuttling oil out of the chokepoint in June and offering it for transfers outside the Gulf of Oman.

This development adds to the increasing oil volumes that Saudi Arabia and the UAE have been sneaking through the Strait of Hormuz and on routes bypassing it since the start of the war. The UAE has managed to boost its oil exports to pre-crisis levels as early as June, while Saudi Arabia has also started offering STS transfers of Gulf crude outside Hormuz.

Total oil flows through the Strait of Hormuz have now risen to about 7-8 million bpd, up from about 4 million bpd in mid-July. The higher oil volumes exiting the Persian Gulf have kept benchmark crude oil futures in check despite the tightening global fuel markets.