How the UAE Has Kept Its Oil Flowing Through Hormuz
The United Arab Emirates has managed to boost its oil exports to pre-crisis levels as early as June, as it has kept pushing crude through the Strait of Hormuz and outside it. The UAE, which left OPEC on May 1, has found workarounds to the blockage at the Strait of Hormuz. It has been shuttling crude through the chokepoint to load it on larger vessels outside the Strait, maximizing the use of its…
The United Arab Emirates has successfully maintained its oil exports at pre-crisis levels despite challenges in the Strait of Hormuz. As it exited OPEC on May 1, the UAE has found creative ways to circumvent the blockage. It has been transporting crude through the narrow chokepoint and loading it onto larger vessels outside the Strait, utilizing its onshore pipeline to move crude from west to east, and shipping tankers through the Strait using a method called "dark mode."
According to Bloomberg's vessel-tracking data, the UAE has shipped more crude oil through the Strait of Hormuz than any other Gulf producer in June and July. ADNOC, the UAE's state-owned oil company, issued multiple tenders in recent weeks to sell millions of barrels of crude oil, with shipments planned from UAE ports Zirku, Das Island, and Fujairah, as well as via ship-to-ship transfers offshore Fujairah or Malaysia.
With June marking the UAE's highest crude oil production ever at 4.1 million barrels per day, the country has adapted to the Hormuz blockade by sneaking tankers through the Strait under the cover of darkness and actively marketing its crude grades for loading at offshore facilities in Fujairah and Oman.
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