Oil is Quietly Escaping the Strait of Hormuz. What it Means for Oil Stocks.
More oil could be flowing out of the Persian Gulf than tracking sources suggest.
Oil is Quietly Escaping the Strait of Hormuz. What it Means for Oil Stocks.
Overview
Around 20 million barrels of oil per day (BPD) traversed the Strait of Hormuz before the war with Iran. That accounted for about 25% of the global seaborne oil trade and around 20% of the total global supply. According to tanker tracking data, oil flows through the Strait of Hormuz have slowed to a trickle since the war with Iran began.
However, that trickle might be bigger than first thought. Some ships are paying tolls to Iran while others are quietly escaping the Strait at night with their transponders off. These additional flows are helping keep oil prices down. Here’s a look at what it means for oil stocks.
Image source: Getty Images.
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Originally published at www.fool.com.
