UAE Oil Tankers Go Dark to Slip Through Hormuz

The United Arab Emirates has moved oil through the Strait of Hormuz despite ongoing tensions between Iran, the US and Israel, with four tankers sailing the strategic route with their location systems turned off to reduce the risk of Iranian attacks, according to shipping sources cited by Reuters.

Outside the strait, the cargo was transferred to the Greek-flagged VLCC Olympic Luck and shipped to the Pengerang refinery in Malaysia on 17-18 April. Some was also sent to a refinery in northeast Asia and sold at a record premium of $20 per barrel.

The volume of exports remains a fraction of pre-conflict levels, but the episode shows that both producers and buyers are prepared to accept greater security risks to keep oil flowing to world markets.

The situation is also affecting other Gulf producers. Iraq, Kuwait and Qatar have reportedly restricted sales or cut prices to attract buyers, while Saudi Arabia has redirected part of its exports via the Red Sea.

(reuters, mja)