Oil producers and shippers are adapting to move crude exports through the Strait of Hormuz using pipelines and ship-to-ship transfers, helping restore pre-conflict export levels despite ongoing risks. While military escorts still accompany some vessels, analysts note these workarounds have eased crude flows, though refined products like diesel face continued supply bottlenecks. The shift highlights efforts to mitigate disruptions in a key global trade route amid heightened tensions. Higher prices for refined fuels reflect the lingering impact of these constraints.
Alternative ways being used to move fuel out of Gulf region, but flows of refined products such as diesel still constrainedExports of crude from the strait of Hormuz have largely returned to levels seen before the outbreak of the Iran war, as oil producers and the shipping industry have found alternative ways of transporting crucial fuel out of the Middle East.Pipeline exports and ship-to-ship transfers are among the methods being used, according to analysts tracking the situation, while the US military continues to escort some vessels. However, flows of refined products such as diesel remain constrained, pushing prices higher. Continue reading...
