Ship-to-Ship Transfers Keep Gulf Oil Flowing Outside Hormuz

Ship-to-ship transfers in the Gulf of Oman have become a crucial workaround for oil producers seeking to bypass the Strait of Hormuz, where direct vessel traffic has hit a multi-month low.

TankerTrackers reported at least 15 simultaneous ship-to-ship transfer operations underway on August 26, involving roughly 25 million barrels of crude oil and refined products from nearly every country in the region except Iran.

The report suggests this practice has become a 'safety valve' for Gulf producers, allowing them to adapt to the conflict six months after it began.

Kpler data shows that Hormuz traffic was at a three-month low on Monday, with just two commodity vessels transiting the strait and a daily oil transit of around 5 million barrels per day, down from an average of 6-7 million barrels per day earlier in August.