Bloomberg: Hidden oil shipments continue through Strait of Hormuz

More than 4 million barrels of crude oil a day are reportedly being moved through the Strait of Hormuz via a covert shipping network, helping keep global oil prices in check despite attacks on vessels and the ongoing conflict with Iran.

According to people familiar with the shipments cited by Bloomberg, tankers are transporting crude through the Strait of Hormuz and then transferring the cargo onto other vessels in the Gulf of Oman. The shipments have continued at full pace despite growing risks to crews and vessels.

The oil is being supplied by producers in the United Arab Emirates, Iraq, Qatar and Kuwait. Analysts say the continued flow is helping keep Brent crude in the $80–90-a-barrel range and reducing fears that an energy supply shock could fuel a broader wave of inflation.

The shipments have reportedly been operating for several months. However, vessels using the route have come under attack, oil spills in the region have increased and several sailors have been killed while crossing the strait.

Despite the dangers, exporters and shipowners have shown little sign of slowing down. Experts say the route has become one of the few ways for some producers to continue delivering crude to international markets.

The UAE’s state-owned Abu Dhabi National Oil Co. (ADNOC) is among the companies involved.

“Despite repeated attacks on our vessels, we are firmly committed to continuing to fulfil our obligations to safely deliver energy to global markets,” ADNOC said.

The company said 23 of its vessels had been attacked while transiting the Strait of Hormuz since the conflict began. One sailor was killed and 20 crew members were injured.

By Sabina Mammadli