TotalEnergies CEO Says Hormuz Supertanker Shipping Costs $20 Million
This digest was compiled by AI from multiple sources — links to the originals are below.
TotalEnergies CEO Patrick Pouyanne said shipping oil on a supertanker through the Strait of Hormuz costs about $20 million, or $10 a barrel. The French energy giant is buying barrels at $50 to $60 inside the Persian Gulf as producers seek to move supplies after six months of conflict. Brent futures traded above $90 on Monday even as Hormuz flows helped cap prices below $100.
Key Facts
- TotalEnergies CEO Patrick Pouyanne said shipping oil on a supertanker through the Strait of Hormuz costs about $20 million, or $10 a barrel.
- TotalEnergies is buying barrels at $50 to $60 inside the Persian Gulf as producers seek to move supplies after six months of conflict.
- Benchmark Brent futures were trading above $90 on Monday.
- The Strait of Hormuz carried about a fifth of the world's oil flows before the Iran war.
- Prices of gasoline and diesel have rallied due to Ukrainian attacks on Russian refineries and the fact that crude dominates Hormuz shipments.
Hormuz Shipping Costs
TotalEnergies Chairman and CEO Patrick Pouyanne said the cost of shipping oil cargoes on a supertanker through the Strait of Hormuz is about $20 million. The additional freight costs for a supertanker equate to about $10 a barrel, he said. The French energy giant is one of the largest traders of oil from Iraq and Qatar, two countries that have continued to move barrels through Hormuz in recent weeks. A growing number of producers have been ferrying cargoes through the critical waterway, which before the Iran war carried about a fifth of the world's oil flows.
Market Impact
Those volumes have helped prevent a surge in global prices beyond $100 a barrel, but also offer lucrative trading opportunities for shipowners and middlemen. While some shipments sail directly to refineries around the world, many are loaded onto ships in the Gulf of Oman, before being taken to their eventual destinations. Pouyanne said there is a split between crude oil markets, which look bearish — in part thanks to flows through Hormuz — and fuel markets that remain tight. Prices of products like gasoline and diesel have rallied due to Ukrainian attacks on Russian refineries and the fact that crude dominates Hormuz shipments.
1 source
TotalEnergies CEO Says Hormuz Supertanker Shipping Costs $20 Million
