Jump in Kuwaiti and Qatari oil shipments through the Strait of Hormuz
Kuwait and Qatar, two of the smallest oil producers in the Arabian Gulf, are shipping larger volumes through the Strait of Hormuz, contributing to increased supply that is curbing global prices. The two countries, which together exported 2 million barrels of oil per day before the outbreak of war with Iran, have managed to restore shipments to 70% of pre-conflict levels, according to traders who requested anonymity as they were not permitted to speak to the media.
The United Arab Emirates was the first Gulf producer state to export large volumes of oil through the Strait of Hormuz, using ship-to-ship transfers in the Gulf of Oman under a method known as “shuttle transport” (tankers moving cargoes back and forth over short routes). Saudi Arabia joined them since then, having been forced to rely more heavily on exports through the waterway after Houthi militants began targeting oil tankers in the Red Sea.
**Surge in Flows Through Hormuz**
Traders said that approximately 7 to 8 million barrels of oil per day are now passing through the Strait of Hormuz to the outside world, up from about 4 million barrels per day in mid-July. This represents roughly three-quarters of pre-war levels. Vortexa stated on Monday that the average oil flow through the waterway over a seven-day period approached 10 million barrels per day.
Shipments are increasing amid ongoing stalemate between Washington and Tehran regarding the war with Iran, with control of the Strait of Hormuz remaining the main point of contention. Brent crude, the global oil price benchmark, is trading near $87 per barrel, down from over $120 in late April.
Both Qatar and Kuwait began routing shipments through Hormuz around June, raising export volumes despite the risk of Iranian attacks.
**Targeting of Kuwaiti Tanker**
A supertanker owned by the Kuwait Petroleum Corporation was targeted earlier in August while transiting the strait, according to Kuwait’s announcement in documents filed with the UN body responsible for overseeing maritime shipping. Meanwhile, QatarEnergy offered this week to sell its crude via ship-to-ship transfers outside the Strait of Hormuz in the Gulf of Oman.
The shuttle transport movement developed as most ships hesitated to risk transiting the Strait of Hormuz. Consequently, Gulf producers have been forced to use their own fleets or charter tankers willing to take the risk of transiting the waterway for high prices, offloading cargoes onto other vessels.
**Kuwait’s Fleet**
Kuwait has largely relied on its own ships, owning a fleet of 11 supertankers, according to the Equasis shipping database. Ship tracking platforms show that most of these very large crude carriers (VLCCs) have not transmitted satellite signals for over two months, indicating they have turned off their transponders or disappeared from tracking systems.
Traders said Kuwait’s success in moving oil through Hormuz has enabled it to place cargoes in the spot market. Dealers added that these shipments supplement Kuwait’s obligations to its East Asian clients under long-term contracts. They noted that Qatari oil is mostly transported via commercial tanker fleets. TotalEnergies announced this week that it is among the leading companies handling Qatari shipments.
