Hormuz Shuttles Keep Oil Flowing, But At a High Cost

Reuters

Total Views: 1063

September 21, 2026

https://gcaptain.com/hormuz-shuttles-keep-oil-flowing-but-at-a-high-cost/

The article explains how oil producers are using ship to ship transfers to keep oil exports moving during the conflict with Iran. The system has helped maintain oil shipments, but it has also made transportation more expensive and complicated.

Facts:

Tankers are transferring crude oil between ships near Oman, south of the Strait of Hormuz.

The system allows some tankers to make shorter trips and avoid longer trips through the Strait of Hormuz.

Oil exports through Hormuz reached about 6.5 million barrels per day in September.

Before the conflict, about one fifth of global oil consumption passed through the Strait of Hormuz.

ADNOC began using shuttle tankers in April to move crude to safer waters near Oman.

UAE oil exports are expected to reach 3.6 million barrels per day in September.

Saudi Aramco has increased its use of ship to ship transfers.

About 2.5 million barrels per day are expected to use ship to ship transfers in the Gulf of Oman in September.

Very large crude carrier freight rates for Gulf oil going to China have risen above 30 dollars per barrel.

Freight costs now make up more than one quarter of the cost of the oil mentioned in the article.

Producers are giving larger discounts on crude to help cover higher transportation costs.

The increased use of tankers for these transfers has reduced the number of available tankers and raised shipping costs.