Strait of Hormuz Oil Flow Hits Record but Shipping Remains Below Pre-Conflict Levels

President Donald Trump stated that 19 million barrels of oil flowed out of the Strait of Hormuz the previous day, an all-time record. He added that oil prices are tumbling and the world is a much safer place. Shipping traffic through the strait rose over the weekend to the highest level since the conflict began at the end of February.

Kpler reported that 109 vessels transited from Saturday through Monday. The increase followed an agreement between the U.S. and Iran to open the waterway for shipping during a 60-day negotiating window.

The U.S. had instituted a naval blockade and Iran had laid sea mines that deterred traffic. The central channel remains uncleared of mines, so vessels are using either a northern route in Iranian waters or a southern route in Omani waters.

The U.S. Navy is overseeing transits on the southern route. Iran last week demanded that vessels use the northern route. The Joint Maritime Information Center lowered the regional threat level to moderate on June 18 and recommended the southern route near Oman because it has been cleared of mines.

The center advised mariners of the existence of mines and expected naval presence during clearance operations. Brent crude traded at approximately $75 per barrel on Tuesday after falling 0.3 percent that day and more than 4.5 percent over the past five days. West Texas Intermediate stood at about $73 per barrel after declining 0.8 percent on the day and 7.7 percent over the same period.

Oil prices had surged above $100 per barrel at times during the first two months of the conflict. More than 130 ships per day typically transited the strait before the conflict. A backlog of hundreds of ships still waits to pass, according to the International Maritime Organization.

Forties crude from the North Sea traded at its lowest level in two years on Monday.