TotalEnergies CEO Highlights $20 Million Cost for Shipping Oil Through Hormuz
The cost of shipping oil through the Strait of Hormuz is approximately $20 million per supertanker, according to TotalEnergies CEO Patrick Pouyanne. This highlights significant margins available to traders and shipowners amid ongoing regional conflict that has disrupted supply chains. Pouyanne noted that barrels are being purchased at prices between $50 and $60 within the Persian Gulf as producers seek to move supplies despite six months of instability. The additional freight cost translates into about $10 per barrel, with Brent crude trading above $90 on Monday. TotalEnergies is among the largest traders handling oil from Iraq and Qatar, which have continued shipments through Hormuz. The increased flow has helped prevent global prices from rising beyond $100 a barrel but also created opportunities for shipowners and middlemen. While some crude moves directly to refineries worldwide, many are first loaded in the Gulf of Oman before reaching their final destinations.
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Topics: global oil markets Hormuz Strait oil shipping trading margins