Pouyanne: Hormuz Crude Flow at Premium, Products Scarce Amid War

TotalEnergies CEO Patrick Pouyanne explained the 'very strange' market dynamic caused by the US-Iran war. Oil passing through the Strait of Hormuz has a $10/b premium, while refined products are scarce due to attacks on Russian refineries and Ukraine's efficiency.

Pouyanne said crude oil is moving through the strait at night with support, but no fees are being paid to Iran. The process costs around $20 million per VLCC, equivalent to a $10/b premium. This results in bearish crude prices, while refined products are seeing record-high surges.

TotalEnergies is planning to invest in alternative oil routes, including a new pipeline connecting Baghdad and Syria and the UAE's Fujairah pipeline expansion project.