Hormuz Tanker Traffic Slows Amid Rising Oil Flows

Tanker traffic in the Strait of Hormuz slowed down significantly this week, according to preliminary data from Kpler. Despite reports that oil flows are on the rise, only seven commodity vessels traversed the waterway on Thursday, compared to a ten-day average of 15. This marks a drop below the previous day's numbers, with 17 vessels passing through the strait the day before.

The Strait of Hormuz is a critical chokepoint for global oil supplies, and any disruptions can have significant implications for crude prices. Bloomberg reported that oil flows in the area are increasing, with estimates suggesting between 6 and 8 million barrels daily moving out of the region. However, Goldman Sachs estimated that oil flows out of the strait are only at two-thirds of pre-war levels.

ING's commodity analysts noted that more Persian Gulf oil producers are shipping their crude through the strait, while others are selling outside of it. This suggests that the market is adapting to the new reality of a shut-down Hormuz. However, hopes for a resumption in peace talks between Tehran and Washington remain slim.

In related news, Venezuela's potential exit from OPEC has been discussed, with some analysts suggesting that higher production could result. However, expectations of a quick resolution are premature, as reversing years-long declines in oil production would take time.