The United Arab Emirates has navigated the challenges surrounding the Strait of Hormuz more effectively than any other oil producer in the Gulf, providing critical relief to a global market still reeling from a historic energy crisis.

According to a Bloomberg report citing data from Kpler, the UAE has moved more oil through the contested waterway than any other producer over the past two months.

On Tuesday, the supertanker Romania Prosperity appeared in the Gulf of Oman, its transponder having been switched off since the end of July. Kpler data indicated the vessel was fully loaded with oil from the Abu Dhabi National Oil Company (ADNOC). It was one of several such Arabian Gulf exits engineered by the UAE.

Vessels visible on ship-tracking databases offer clues about trade flows, but analysts say the actual volume is considerably higher, as many ships have gone dark during their Strait of Hormuz crossings.

Since the start of June, ADNOC has sold over 130 million barrels through an unprecedented seven tenders — equivalent to more than a month of crude demand from Japan, Asia's third-largest consumer. ADNOC's ability to navigate these logistical challenges has been instrumental in keeping oil markets supplied. Brent crude was trading at approximately $79 a barrel on Thursday.

Vortexa estimated that the UAE was the only Middle East producer to reach pre-war export levels in both June and July. This achievement came amid an intense US bombing campaign against Iran over the past month. In response to those attacks, Iran targeted ships transiting the Strait of Hormuz. Iran and Oman are currently engaged in talks over establishing a middle corridor in the Strait, while the issue remains central to negotiations between Washington and Tehran.

The UAE has also succeeded in delivering LNG to its global customers. In July, an ADNOC LNG tanker named Mubaraz appeared near India after going dark inside the Gulf.

Several factors explain the UAE's success in moving substantial oil volumes out of the Arabian Gulf despite the volatility. First, the country has purchased tanker capacity at premium rates to conduct daring shuttle runs through the Strait. Once vessels carrying UAE crude exit Hormuz, the cargo is typically transferred to another ship in the Gulf of Oman before being exported to buyers worldwide.

Additionally, the UAE has utilized a cross-country pipeline to move extra barrels, bypassing Hormuz entirely. The Habshan–Fujairah pipeline, which connects inland oil fields directly to the Gulf of Oman coast, has been central to this strategy. The country also has expansion plans at Fujairah aimed at further reducing its dependence on the Strait.

Saudi Arabia has also performed relatively well in maintaining crude flows during the crisis. It has piped oil to its Red Sea port of Yanbu, allowing it to bypass Hormuz as well. However, Yemen's Iran-backed Houthis have imposed a naval blockade on Saudi Arabia and have struck eight vessels in recent weeks.

Source: Arabian Business