Gulf Crude Loading Plummets Despite Slight Rise in Hormuz Vessel Traffic

Key Facts

Amid ongoing geopolitical tensions weighing on global energy supply chains, the Strait of Hormuz has seen divergent activity reflecting instability in oil flows. According to reports, the number of vessels transiting the strait rose to 14 on Wednesday, yet this slight uptick in traffic did not prevent Gulf crude loading activity from falling by more than half for the first time in six weeks. This impairment persists despite a four-day pause in US strikes, highlighting a deep-seated bottleneck in current export operations.

Data from Kpler indicates that maritime security risks and war risk insurance costs remain the primary barriers to restoring full export capacity, as diplomatic efforts have yet to alleviate these financial burdens. Per market data, the crude backlog has shifted between the Gulf and the Gulf of Oman rather than disappearing, while official estimates suggest approximately 6.5 million barrels of oil per day moved through the strait over the past week supported by US military escorts.

Traders are closely monitoring global trade balance shifts, with Mexico's Balance of Trade data due on July 27, followed by US Durable Goods Orders, which may provide further signals regarding industrial energy demand.