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Market Chatter: Kuwait Offers 4 Million Barrels of Crude to Asia, Signaling Easing Flows at Strait of Hormuz

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For the first time since the war in Iran began, Kuwait is offering to sell its crude oil to refiners in Asia, which is being viewed as an indication of rising oil flows through the Strait of Hormuz, according to a report by Bloomberg, citing traders familiar with the matter.

An estimated 4 million barrels of the country's export-grade crude oil, loaded into two very large crude carriers, is reportedly being offered to refiners in China and South Korea.

This offer from the fifth-largest producer in the region, which loads its supplies deep within the Persian Gulf, signals a potential shift in conditions at the Strait of Hormuz, which has remained effectively closed for more than 14 weeks.

There has been an uptick in vessel activities around Kuwaiti ports in recent days, near the Mina Al Ahmadi terminal, before their transponders were turned off, Bloomberg said, citing ship tracking data.

The report also highlighted that the oil was being offered directly by the state-owned Kuwait Petroleum, rather than via a subsidiary.

Kuwait Petroleum did not immediately respond to' request for a comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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