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UAE boosts oil exports by rerouting crude around the Strait of Hormuz
Vessel tracking compiled by Bloomberg shows the UAE shipped more crude out of the Strait of Hormuz than any other Gulf producer over June and July.
The United Arab Emirates has increased oil exports to pre-crisis levels by finding ways to move crude through and around the Strait of Hormuz, according to OilPrice. After leaving OPEC on May 1, the UAE has used alternative loading and shipping routes to keep crude flowing despite disruptions at the chokepoint.
OilPrice reports the UAE has shuttled crude through the Strait to load it on larger vessels outside the chokepoint, and also maximized the use of its onshore pipeline to move crude from the west to the east of the country, bypassing Hormuz. Tankers have been sent through the Strait as part of this broader approach, while cargoes can also be handled via ship-to-ship transfers offshore Fujairah or Malaysia.
The article also says the UAE issued an unprecedented number of tenders to sell cargoes of millions of barrels of crude oil in recent weeks. It cites Bloomberg vessel-tracking data showing the UAE shipped the most crude oil out of the Strait of Hormuz among Gulf producers over June and July, and notes ADNOC’s seventh tender offering crude since the beginning of June at the end of July.
OilPrice adds that the UAE produced an estimated 4.1 million barrels per day of crude oil in June, its highest output ever, and says crude output jumped from 3.3 million bpd. ADNOC expected to sell millions of barrels between August and October, with cargo loadings tied to UAE ports inside and outside the Persian Gulf, including Zirku and Das Island, as well as Fujairah.
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