(Bloomberg) — U.S. forces are assisting in moving millions of barrels of oil through the Strait of Hormuz at night. U.S. Interior Secretary Doug Burgum mentioned on Friday that they often escort more than 20 ships out o...
(Bloomberg) — U.S. forces are assisting in moving millions of barrels of oil through the Strait of Hormuz at night. U.S. Interior Secretary Doug Burgum mentioned on Friday that they often escort more than 20 ships out of this important waterway each night.
Now that sea mines have been removed, this operation has resulted in “more than 20 ships coming out on some nights,” Burgum stated during an interview on CNBC.
With some very large carriers transporting up to 2 million barrels of crude oil each, that means a significant amount of oil has been successfully moved out of the strait, Burgum noted.
Burgum’s remarks shed light on a previously secret operation aimed at freeing oil tankers and other commercial vessels that have been stranded since the U.S. and Israel began attacks on Iran in late February.
This waterway used to allow about 20% of the world’s crude oil to pass through, and its closure has prevented millions of barrels from reaching the market each day, which has led to a rise in global oil and fuel prices.
President Donald Trump announced on Wednesday that this operation has helped lower crude oil prices, claiming in a social media post that over 200 commercial ships and 100 million barrels of oil have successfully made it out of Hormuz during this “secret mission.” He also told reporters that 22 ships were taken out of the strait “late at night, with no lights” to avoid being noticed.
On Friday, futures for West Texas Intermediate, the U.S. oil benchmark, were trading at $85.48 per barrel, with prices declining slightly due to hopes that the U.S. and Iran are nearing a peace agreement.
While a U.S.-imposed blockade is restricting Iranian oil shipments, non-Iranian oil traffic through the strait has increased by about 50% so far this month. Shippers are using strategies like “dark transits,” where they navigate the waterway with their tracking devices turned off to stay under the radar.
According to Vortexa Ltd., at least 1.8 million barrels left the Persian Gulf during the first 10 days of June.
Burgum indicated that the oil markets have reacted to this increase in crude flows. “I think the markets figured it out before some of the tabloid press did, because you’re starting to see oil prices soften,” he remarked.