Post by : Badri Ariffin

US Energy Secretary Chris Wright has stated that approximately 8 to 9 million barrels of oil are still being transported daily through the Strait of Hormuz. This assertion contradicts reports suggesting a significant decrease in shipments during the ongoing conflict with Iran.

In an interview with Fox News, Wright emphasized that the data from commercial vessel tracking is misleading. Many ships have deactivated their tracking devices and are operating under military protection, complicating the shipping picture.

US officials maintain direct communication with vessels operating in the region and get regular updates on traffic entering and exiting the strait. “We have precise daily information on the number of ships that travel through the Strait of Hormuz,” Wright highlighted during his conversation with Bret Baier. “We are well-informed about their cargo.”

Understanding the Low Vessel Tracking Figures

Kpler, a commercial tracking company, previously estimated that over 100 vessels traversed the Strait daily prior to the conflict. However, Baier noted that Kpler recorded only 14 crossings on both Monday and Tuesday.

Wright challenged these findings, stating that they fail to account for vessels that have turned off their AIS transponders and are traveling incognito.

“Nearly all of these vessels have their AIS switched off, moving in the dark and under escort,” he remarked.

Wright further asserted that the daily oil flow through the strait remains stable at around 8 to 9 million barrels.

Additionally, he noted that another 6 million barrels are currently being shipped via pipelines, bypassing the strait.

Volume of Oil Departing the Arabian Gulf

The total oil shipments leaving the Arabian Gulf are estimated at about 14 to 15 million barrels per day, a decrease from approximately 20 million barrels daily prior to the conflict.

This indicates a decrease of around 5 to 6 million barrels per day.

However, Wright contended that the drop in oil movement is not as significant as some reports have suggested, since vessel-tracking systems fail to capture all shipping activities.

Wright on US Influence Over Hormuz

In the interview, Baier questioned Wright about President Donald Trump's assertion concerning US dominance over the Strait of Hormuz.

Wright refrained from echoing that statement. Instead, he pointed out that Iran continues to pose challenges to neighboring nations and the global economy, although he argued that Tehran's power to disrupt shipping is waning due to increased US military escorts.

“They have one card, and it's getting smaller,” Wright remarked.

Current Fuel Prices in the US

Wright also addressed the current fuel prices in the US, stating that they hover around $4 per gallon.

The administration aims to decrease these prices towards $3 per gallon, although no specific timeline was provided.

“We will absolutely achieve that. The only question is when,” Wright stated.

Refining Capacity's Role in Supply Challenges

Wright highlighted that the pressing issue in energy markets is now related more to refining capacity than to crude oil supplies.

He also noted that Ukrainian actions against Russian refineries are contributing to global supply issues for refined petroleum products, leading to increased prices.

#Gulf News #Strait of Hormuz #Global Updates #World News