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Market Chatter: Oil, LNG Tanker Traffic Through Hormuz Picks Up as Operators Turn to Dark Transits

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As the US and Iran make apparent progress on a peace deal, a handful of oil and LNG tankers have been quietly transiting via the Strait of Hormuz, according to a Reuters report, citing ship tracking data.

Three LNG tankers made the risky crossing journey in recent days, heading to Pakistan, China, and India, along with a supertanker stocked with Iraqi crude, heading towards China, which was reportedly stuck in the Persian Gulf for nearly three months, due to the conflict.

Pakistan, India and China were among a small group of nations deemed "friendly" earlier in the conflict and permitted to sail through the Strait.

Other prominent vessels to have made the transit recently include the Bahamas-flagged Fuwairit, owned by Japan's Mitsui OSK Lines, followed by Al Rayyan, which is owned by QatarEnergy, and is expected to arrive in China by late June.

According to a Bloomberg report, both Qatar and Abu Dhabi increased efforts to move cargoes through Hormuz using alternative operating practices, including the use of "dark transits", which involve vessels temporarily switching off their transponders to avoid detection.

The Abu Dhabi National Oil Company, or ADNOC, has increasingly relied on vessels controlled by Navig8 and joint venture partner Wanhua Chemical Group to move crude, refined products and LNG cargoes out of the Gulf.

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

Transit through the Strait has witnessed an uptick, with 33 vessels having travelled through over the past 24 hours, according to the Hormuz Strait Monitor.

While this is still significantly below the typical daily average of 138 vessels during normal times, it marks an uptick from the low-to mid-single-digit traffic figures, which had become the norm in recent weeks.

(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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