Hormuz Attacks Double as Oil Tops USD106, Tankers Turn Back
(MENAFN) Iranian attacks on vessels in the Strait of Hormuz have escalated, raising fears that renewed hostilities could derail the rebound in Persian Gulf oil exports, according to a report Tuesday by a major financial news service.
Shipping industry sources say cargo traffic through the waterway may be slowing, just weeks after oil flows neared prewar levels. Yet the available data do not clearly show a drop in oil loadings at several major regional export terminals, and some shipowners reported no significant disruption to vessel movements, the report said.
The flare-up comes as instability spreads across the Middle East. Saudi Arabia is facing attacks from Yemen’s Houthi group. The worsening security picture helped lift crude above $106 a barrel in London on Monday, though prices pulled back slightly Tuesday.
On Oct. 11, four tankers were hit by unidentified projectiles in separate incidents while transiting the strait, the UK Maritime Trade Operations agency said. That is roughly double the agency’s average daily number of reported attacks the week before, according to the news service.
The surge appears to be making operators more cautious. Tanker-tracking data compiled by the news service showed more than a dozen supertankers and several Suezmax-class vessels turning around or reversing course on approach to Fujairah in the United Arab Emirates, near the strait’s entrance.
Shipbrokers and some vessel owners in the region also point to signs of reduced activity, notably longer waits for ship-to-ship oil transfers. One shipowner involved in those operations said traffic had not slowed.
The transfers have been critical to keeping regional exports moving. Shuttle tankers carry oil through the high-risk strait and then hand off their cargo to other vessels for delivery to international buyers.
Shipping industry sources say cargo traffic through the waterway may be slowing, just weeks after oil flows neared prewar levels. Yet the available data do not clearly show a drop in oil loadings at several major regional export terminals, and some shipowners reported no significant disruption to vessel movements, the report said.
The flare-up comes as instability spreads across the Middle East. Saudi Arabia is facing attacks from Yemen’s Houthi group. The worsening security picture helped lift crude above $106 a barrel in London on Monday, though prices pulled back slightly Tuesday.
On Oct. 11, four tankers were hit by unidentified projectiles in separate incidents while transiting the strait, the UK Maritime Trade Operations agency said. That is roughly double the agency’s average daily number of reported attacks the week before, according to the news service.
The surge appears to be making operators more cautious. Tanker-tracking data compiled by the news service showed more than a dozen supertankers and several Suezmax-class vessels turning around or reversing course on approach to Fujairah in the United Arab Emirates, near the strait’s entrance.
Shipbrokers and some vessel owners in the region also point to signs of reduced activity, notably longer waits for ship-to-ship oil transfers. One shipowner involved in those operations said traffic had not slowed.
The transfers have been critical to keeping regional exports moving. Shuttle tankers carry oil through the high-risk strait and then hand off their cargo to other vessels for delivery to international buyers.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment