Oil, LNG Exports Continue Through Strait of Hormuz

Middle Eastern producers continue to export oil and liquefied natural gas (LNG) despite recent attacks on shipping in the Strait of Hormuz and renewed tensions between the United States and Iran.

Shipping traffic slowed temporarily after attacks on a container ship and an oil tanker, which strained the ceasefire agreement between Washington and Tehran. Over the weekend, however, both sides agreed to maintain the ceasefire and resume negotiations.

Security concerns remain high. Three VLCC supertankers reportedly switched off their transponders after loading crude oil in Saudi Arabia to reduce the risk of attack while transiting the Persian Gulf.

Loading operations also continued despite a helicopter crash in Saudi Arabia that killed 14 people. Iran is likewise increasing oil exports after Washington suspended export sanctions for 60 days.

Over the weekend, four tankers transported roughly eight million barrels of crude from Gulf producers. Rising exports from the region, which accounts for about one-third of global oil supplies, have helped push oil prices lower.

Exports of liquefied natural gas from Qatar and the United Arab Emirates have also remained steady. Shipping data show loaded LNG carriers continuing to destinations including Kuwait, India and China.

(reuters, max)