News
The number of ship transits through the Strait of Hormuz was four per day on average this past week, down 95% from the pre-conflict average of 125, according to Clarkson Research, which is closely monitoring the impact of the ongoing conflicts in the Middle East on shipping and markets.
Up to 10 oil tankers are estimated to have passed through the straight over the past seven days, carrying an estimated 12 million barrels of oil. Normally, 250 ships go through the waterway with 300 million barrels per week. Very large LPG carriers continue to transit, with two recorded on Sunday. On Monday, two Indian-linked vessels traveled through the straight, lower by 80% than usual.
Crude oil exports from Yanbu Commercial Port on the Red Sea coast of Saudi Arabia amount to as much as four million barrels per day now, which was an increase from one million barrels per day and could increase to five million barrels per day as 40 very large crude oil carriers (VLCCs) are waiting or en route. Arbitrage dynamics, driven by price differentials between the U.S. and international markets, are a key factor supporting the expansion and long-haul transport of U.S. oil and gas and support 10% and 6% of global oil and gas supply, respectively, as well as 3% of the global refining capacity.
Excluding local trading vessels, there are up to 1,100 ships inside the Middle East Gulf, which are estimated to weigh 37 million gross tons and be valued at US$30 billion in total. They include as many as 300 oil tankers, which, in terms of tonnage, further include 6% of crude oil tankers (8% of VLCCs), 4% of product tankers, 4% of very large gas carriers (VLGCs) and 1% of containerships and bulkers.
