Ship-to-ship transfers in the Gulf of Oman are approaching their limit; Saudi Arabia reroutes via the Strait of Hormuz, driving up shipping costs.

(1) According to foreign media citing trade sources and analysts, as Saudi Arabia shifts crude oil exports from Red Sea ports to the direction of the Strait of Hormuz, along with increased exports from other oil-producing countries, ship-to-ship transfer activities for Middle Eastern crude oil in the Gulf of Oman, aimed at the Strait of Hormuz, are nearing capacity limits. (2) They pointed out that Saudi Arabia's export volume has increased this month, requiring more very large crude carriers to shuttle to and from the Strait of Hormuz for crude transport and ship-to-ship transfers. (3) This has led to a reduction in available shipping capacity in the market, pushing up shipping costs and extending the time crude oil spends in transit at sea.