TotalEnergies Finds Profit in Strait of Hormuz Crude Trade Despite High Transport Costs

TotalEnergies CEO Patrick Pouyanne said that crude oil is moving through the Strait of Hormuz profitably, thanks to steep discounts from producers.

According to Pouyanne, the French oil major is 'probably the largest trader of oil from Iraq or from Qatar,' and the company has found a way to offset higher transport costs with these discounts.

'Crude oil is sold to you at $50, $60 per barrel, not the Brent price, because the producers are desperate to push their oil into the market,' Pouyanne explained.

The Strait of Hormuz had been paralyzed during the US and Israeli war with Iran due to threats of bombing and mines, but Pouyanne said that the route remains profitable for those who can find ship owners willing to cross the strait.