- On the other hand, Goldman Sachs stated in a report on Friday that oil flows through the Strait of Hormuz have recovered to about two-thirds of their pre-conflict levels. The bank indicated that this relative recovery played a pivotal role in containing the negative repercussions of the conflict on crude oil prices in global markets, and prevented potentially devastating price spikes.
- Difficulty in determining true sizes due to the practice of “stealth” at sea
Washington, DC – TankerTrackers, a specialized oil tanker monitoring service, reported on Sunday that average crude oil flows through the sensitive Strait of Hormuz have fallen to 3.8 million barrels per day over the past seven days. The company noted that this figure represents a sharp decline from previous averages of 9.8 million barrels per day, which were recorded during the period of the memorandum of understanding between Iran and the United States. It is worth noting that the memorandum’s effective period was limited to approximately 25 days.
On the other hand, Goldman Sachs stated in a report on Friday that oil flows through the Strait of Hormuz have recovered to about two-thirds of their pre-conflict levels. The bank indicated that this relative recovery played a pivotal role in containing the negative repercussions of the conflict on crude oil prices in global markets, and prevented potentially devastating price spikes.
On the other hand, Goldman Sachs stated in a report on Friday that oil flows through the Strait of Hormuz have recovered to about two-thirds of their pre-conflict levels. The bank indicated that this relative recovery played a pivotal role in containing the negative repercussions of the conflict on crude oil prices in global markets, and prevented potentially devastating price spikes.
Goldman Sachs explained that the significant increase in “undetected” transits by specialized shipping companies, coupled with the widespread use of ship-to-ship transfers, clearly demonstrates the ability of producers and shipping companies to adapt to the volatile situation in the Middle East. The bank added that this surge in clandestine flows could significantly mitigate the potential rise in crude oil prices, even if regional unrest persists for an extended period.
Difficulty in determining true sizes due to the practice of “stealth” at sea
In the same vein, regulators and analysts sometimes face significant difficulties in determining the true and precise volumes of oil passing through the Strait of Hormuz, given the frequent practice of many tankers and vessels switching off their satellite transponders. This common practice in the shipping industry is known as “stealth” or operating without signal. Its primary purpose is to avoid monitoring and tracking ship movements amidst escalating security tensions.
