Global Oil Market Stabilises As Strait Of Hormuz Records Highest In Six Months

Global oil market is resetting for sustainable supply as oil and liquefied natural gas shipments through the Strait of Hormuz over the past two weeks reached their highest level in six months.

This further signals that U.S. naval protection and mine-clearance efforts are “paying off,” a regional U.S. commander said.

“Clearly, momentum is building,” Admiral Brad Cooper, head of U.S. Central Command, said in a video message Saturday. The strait’s primary transit lanes are clear of mines, and Persian Gulf allies have shipped more than 1 billion barrels of crude through the waterway “in the last couple months,” he said.

The increase comes amid a global squeeze on oil and petroleum products following months of Middle East supply disruptions. Iran maintains it has closed the strait, while regional negotiations over agreed shipping routes have faltered.

Saudi Arabia also faced renewed attacks at the weekend. Saudi air defenses intercepted a Houthi ballistic missile targeting Riyadh and thwarted additional attacks on several cities, including the Red Sea oil port of Yanbu, according to the Saudi Press Agency. The Houthis said they targeted sites in Saudi Arabia with missiles and drones.

The Strait of Hormuz remains critical to global oil supplies. U.S. Energy Secretary Chris Wright said Sept. 13 that markets continue to rely on roughly 10 MMbpd of crude and petroleum products moving through the waterway.

Cooper said the U.S. is working with Persian Gulf allies, insurers and shipping companies to further increase traffic through the strait.

“The effort is paying off,” he said. “The volume of crude oil, cargo, and liquid natural gas these past two weeks is higher than at any point in the past six months.”

Meanwhile, Iran “has exported zero barrels” as the U.S. enforces a blockade in the strait, Cooper said.

Saudi Arabia has faced renewed attacks in September as the Houthis target energy infrastructure and other sites. 

The group has also threatened Saudi shipping in the Red Sea, which has become an increasingly important alternative oil export route amid disruptions to Strait of Hormuz traffic.