Hormuz Strait Oil Flows Rebound Amid Middle East Conflict

Oil flows through the Strait of Hormuz have rebounded to around two-thirds of pre-war levels, according to Goldman Sachs Group Inc. The waterway now sees total exports of crude and oil products pass through at a rate of 15 million to 16 million barrels per day.

This is an increase from the trough of 5 million to 6 million barrels per day recorded in March, but still falls short of pre-conflict levels by 7-8 million barrels. The rise in dark crossings and ship-to-ship transfers by specialized shippers shows that producers and shippers are adapting to the Middle East conflict.

As a result, global crude prices have dropped to around $89 per barrel from over $120 in April. However, analysts note that higher dark flows could moderate the upside to crude oil prices even if Mideast disruptions last longer.