The expense associated with transporting oil via supertankers through the Strait of Hormuz is approximately $20 million, highlighting significant profit potential for traders and shipowners, according to Patrick Pouyanne, Chairman and CEO of TotalEnergies SE. As producers urgently try to push their oil to market following six months of conflict, Pouyanne noted that the company is purchasing oil between $50 to $60 per barrel in the Persian Gulf, factoring in freight costs of about $10 per barrel. With benchmark Brent futures trading over $90 on Monday, these circumstances create a favorable market.
TotalEnergies stands as a major player in the oil trading sphere, particularly sourcing oil from Iraq and Qatar. Both countries have been actively transporting crude through Hormuz, despite the geopolitical tensions, contributing to the steady flow of oil that historically accounted for about 20% of global oil supplies. This sustained flow has helped moderate worldwide prices, preventing them from surging past $100 per barrel while also presenting profitable trading opportunities.
Pouyanne pointed out a notable division in the oil markets, where crude prices appear bearish due to the consistent flows through Hormuz, contrasted sharply with tightening fuel markets. Prices for refined products like gasoline and diesel have surged due to recent attacks on Russian refineries, as crude shipments remain dominant through Hormuz.
