TotalEnergies Seizes Opportunity in Strait of Hormuz Oil Trade

TotalEnergies CEO Patrick Pouyanne says his company is profitably moving oil through the Strait of Hormuz, despite higher transport costs.

The strait has been a key transit route for global oil supplies, but was paralyzed during the US-Israeli war with Iran due to threats of bombing and mines.

Pouyanne said that crude oil is being sold at discounted prices, ranging from $50 to $60 per barrel, which are lower than Brent crude futures prices, currently above $90 a barrel.

The CEO explained that producers are desperate to push their oil into the market and are willing to sell it at a discount. He also stated that the transport costs through the Strait of Hormuz are approximately $10 per barrel, which is offset by the discounted price.