Covert Mideast oil flows keep global prices in check despite Iran war

Middle Eastern oil producers are covertly shuttling large volumes of crude through the Strait of Hormuz, helping keep global oil prices stable despite the ongoing Iran war, Livemint reports. The trade involves ferrying oil undetected through the chokepoint and transferring barrels onto tankers in the Gulf of Oman, running at full tilt even after recent attacks on vessels. The volumes are running higher than market estimates of 4 million barrels a day, according to people with knowledge of the shipments.

Before the war, about 20 million barrels a day crossed Hormuz, roughly a fifth of the world's oil supply. US Energy Secretary Chris Wright said 9 million barrels a day crossed last week, near half of pre-war rates. Brent oil futures have traded between $80 and $90 a barrel in August, far from the $150 some feared at the war's onset. The dark shuttle transits, combined with pipeline workarounds and stockpile releases, have limited the economic hit.

The United Arab Emirates' state oil giant Abu Dhabi National Oil Co. said it has sold about 135 million barrels of crude to buyers worldwide and issued another round of sales last week. Since the conflict began, 23 of Adnoc's vessels have been attacked, resulting in one fatality and 20 injuries. Buyers in Asia said occasional delays add to market uncertainty.