• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 20 hours Tesla Begins Construction Of World’s Largest Energy Storage Facility
  • 17 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 1 hour Will any journalist have the balls to ask Kamala if she supports Wall Street "Carried Interest" Tax Loophole
  • 2 days Trump Hands Putin Major Geopolitical Victory
  • 4 hours America Could Go Fully Electric Right Now
  • 4 hours Buying votes is cool now.
  • 5 hours In 1,267 days, Trump has made 20,055 false or misleading claims
  • 2 days Those Nasty White People and Camping Racism
  • 3 hours Brent above $45. Holding breath for $50??
  • 1 day .
  • 1 day The Truth about Chinese and Indian Engineering
  • 1 day COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 4 hours China wields coronavirus to nationalize American-owned carmaker
  • 1 day The World is Facing a Solar Panel Waste Problem
  • 3 days Oil Tanker Runs Aground in Mauritius - Oil Spill

Saudi Tanker Group Halts Strait Of Hormuz Route

Amid the rising tension in the Middle East, Saudi Arabia’s tanker and logistics group Bahri has suspended transits through the Strait of Hormuz, the world’s most important oil chokepoint which is in close proximity to Iranian waters, the Wall Street Journal reports, as the market is digesting the retaliatory Iranian attack on U.S. troops in Iraq.

Over the past week, the tension in the Middle East and around the Strait of Hormuz has noticeably increased after the U.S. killed the top Iranian general of the Al Quds forces, Qassem Soleimani. Global markets and oil investors were waiting for the Iranian retaliation, which came late on Tuesday with a ballistic missiles attack on U.S. bases in Iraq.  

Apart from the Saudi tanker group, Brazil’s Petrobras has also suspended transits of oil tankers through the Strait of Hormuz, according to the WSJ.

The Strait of Hormuz is the most important oil chokepoint in the world with daily oil flows averaging 21 million bpd, or the equivalent of 21 percent of global petroleum liquids consumption. According to EIA estimates, 76 percent of the crude oil and condensate that moved through the Strait of Hormuz last year went to Asian markets, with China, India, Japan, South Korea, and Singapore the top destinations.

After the killing of Soleimani last week, the British Royal Navy is now escorting UK-flagged vessels going through the world’s most vital oil choke point.

While tanker owners and operators and countries move to protect their shipments in the Middle East, the energy minister of the United Arab Emirates (UAE), Suhail al-Mazrouei, said in Abu Dhabi on Wednesday that he doesn’t see immediate risk to oil transits through the Strait of Hormuz.

“This is definitely an escalation between the United States, which is an ally, and Iran, which is a neighbor, and the last thing we want is more tension in the Middle East,” al-Mazrouei said on the sidelines of a conference, as carried by Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News