Strait of Hormuz Shipping Traffic Falls Further as Saudi Oil Flows Rise
Commodity vessels traversing the Strait of Hormuz declined further, with just a dozen commodity vessels in total making the passage this weekend, Reuters has reported. This compares to 35 tankers and other commodity carriers passing the chokepoint a week earlier. The data includes only tankers that
Source: OilPrice.com
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DW NOTE
Saudi Arabia is routing more oil out via the Red Sea and overland pipelines because the Strait is shut. That solves Riyadh's export problem — it does nothing for the 20% of global seaborne oil that used to flow through Hormuz and now doesn't. The price should be triple-digit sticky; instead WTI is under $100 and falling. Markets are pricing in demand destruction, not supply shock.