A new shuttling system is reshaping the Middle East oil market as producers adapt to regional conflicts. Ship-to-ship transfers have become essential for Gulf producers, ensuring safer transport and maintaining exports. Despite rising shipping costs and vessel shortages, this innovative approach has allowed continued oil flow through the Strait of Hormuz.
At least three Indian oil refiners and a global energy company plan to avoid vessels on Iran’s newly issued blacklist, which targets ships involved in ship-to-ship transfers. This escalation in the Strait of Hormuz raises security concerns, as Iran threatens penalties against non-compliant vessels, complicating oil transportation in the region.
Saudi Aramco is negotiating crude oil supplies to select Asian refiners, bypassing the Strait of Hormuz. This strategy, similar to that of ADNOC, involves ship-to-ship transfers off Fujairah. Amid ongoing regional disruptions, Aramco’s shift in logistics aims to maintain market share while ensuring safer delivery routes for its crude.
| Cookie | Duration | Description |
|---|---|---|
| cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
| cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
| cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
| cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
| cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
| viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |