Middle East Oil Producers Use Covert Shuttle Trade

Oil producers from the United Arab Emirates, Iraq, Qatar, and Kuwait have implemented a clandestine shuttle trade to move crude oil through the Strait of Hormuz. These vessels transfer cargo to larger tankers in the Gulf of Oman to maintain global energy supplies and prevent price spikes during the ongoing Iran war.

Abu Dhabi National Oil Co. reported that 23 of its vessels have been attacked, resulting in one fatality and 20 injuries. Despite these risks, the operation has kept Brent oil futures between $80 and $90 a barrel, avoiding predicted peaks of $150. U.S. Energy Secretary Chris Wright noted that flows reached 9 million barrels per day over a recent seven-day period, significantly exceeding market estimates of 4 million barrels per day.

Other regional efforts include pipeline workarounds and stockpile releases. Saudi Arabia has shown tentative signs of increasing activity at its Ras Tanura hub as Houthi militants threaten alternative Red Sea routes. The Saudi tanker company Bahri has been positioning supertankers off the coast of Oman to facilitate these cargo transfers.