BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil | Shipping

Factbox: Persian Gulf tensions raise stakes for oil, shipping markets

Energy | LNG | Natural Gas | Natural Gas (European)

Russian Gas in Europe: More Than Pipelines

Shipping

Platts Dirty Tankerwire

Oil | Refined Products | Fuel Oil | Shipping | Dry Freight | Marine Fuels | Tankers

Mediterranean Bunker Fuel Conference, 8th Annual

Energy | Oil | Crude Oil

Analysis: DME Oman benchmark move backfires as open interest stalls

Factbox: Persian Gulf tensions raise stakes for oil, shipping markets

London — Ongoing tensions in the Persian Gulf have left ship operators in the region wary of passing through the chokepoint, the Strait of Hormuz, and heightening geopolitical risks in the oil market.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

On Thursday morning the UK's Ministry of Defence said three Iranian vessels 'attempted to impede the passage' of the British Heritage as it exited the Gulf. Iran's Revolutionary Guards have denied responsibility, according to the Fars news agency.

The incident follows comments by a senior Iranian official last week that Iran should seize a British tanker in retaliation for the arrest of the Grace 1 in Gibraltar last week, allegedly carrying Iranian crude to Syria. The key oil and shipping artery, the Strait of Hormuz, and regional hub Fujairah have been under the spotlight after a number of attacks on oil tankers in the region.

Related infographic: Is Iran really targeting 'British' tankers?

TRADE FLOWS

**An average of 20.7 million b/d of oil passed through the Strait of Hormuz last year, according to the EIA, up from 20.3 million b/d the previous year.

**Crude and condensate flows through the strait averaged 17.3 million b/d in 2018, while refined product flows averaged 3.3 million b/d, according to the EIA. LNG flows averaged 4.1 Tcf/year.

**Oil shipments through the strait have continued as normal since tanker attacks in May and June, though insurance rates have soared and bunker demand at Fujairah has declined.

**Marine fuel sales at the Port of Fujairah are estimated to have dropped about 16% quarter on quarter in Q2, 2019, as continued tensions in the Middle East after the recent tanker attacks in the region weighed on market sentiment, industry sources told S&P Global Platts this week.

**Fujairah is among the world's top bunkering hubs and lies outside the Strait of Hormuz, which handles about 30% of the world's seaborne crude. Bunker sales volumes at the Port of Fujairah were around 1.6 million mt in the second quarter, compared with about 1.9 million mt in the first, according to sources

PRICES

**ICE Brent crude futures rose after the news about the British Heritage was announced on Thursday morning. The September contract traded as high as $67.65/b, 64 cents/b higher than Wednesday's close.

**BP has not disclosed to market participants whether it will halt sending ships to the Persian Gulf due to ongoing security concerns, shipping sources said.

**"Basically, all owners will put their vessels on alert and give them some best practice guidelines while transiting the Strait of Hormuz or passages close to Iran," a broker said.

**The British Heritage had been chartered by Shell last week to load a 140,000 mt crude cargo at Basrah on July 5-7 for delivery to Northwest Europe or the Mediterranean, but shipbrokers told S&P Global Platts Monday the booking was cancelled. The tanker left the Persian Gulf without a cargo.

INFRASTRUCTURE

**Only Iran and Saudi Arabia have alternative access routes to maritime shipping lanes. Saudi Arabia has access to the Red Sea via Yanbu port, where its King Fahd crude export terminal has a loading capacity of 6.6 million b/d.

**Yanbu port is served by the 4.8 million b/d Petroline (East-West Pipeline), which has been pumping around 1.9 million b/d, leaving spare capacity of 2.9 million b/d, according to the EIA.

**The UAE operates the 1.5 million b/d Abu Dhabi Crude Oil Pipeline (Habshan-Fujairah), which has been pumping around 500,000 b/d, leaving spare capacity of 1 million b/d, the EIA said.

Related content:


News: Asian Suezmax market cautious after Iran allegedly accosted BP tanker
Podcast: Changing currents for crude flows following trouble in the Strait of Hormuz

-- Jack Jordan, jack.jordan@spglobal.com

-- Edited by Paul Hickin, newsdesk@spglobal.com