Commodities
TotalEnergies Thrives Despite Strait of Hormuz Risks
TotalEnergies CEO Patrick Pouyanne said that the company is profitably moving oil through the Strait of Hormuz, despite higher transport costs, thanks to steep discounts from crude producers.
The Strait of Hormuz has been a key transit route for a fifth of global oil and LNG supplies, but it was paralyzed during the US and Israeli war with Iran due to threats of bombing and mines.
Pouyanne stated that crude oil is being sold at $30 below Brent prices because producers are desperate to push their oil into the market. He added that it costs around $20 million to move a VLCC through the strait, which equates to an extra $10 per barrel.