EIA Report Highlights The Strait of Hormuz as the World’s Key Oil Transit Point

It is located between Oman and Iran and connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.

SEATTLE (Oil Monster): The latest report published by the U.S. Energy Information Administration (EIA) portrays The Strait of Hormuz as the world’s most important oil transit chokepoint. It is located between Oman and Iran and connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. 

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The Strait has consistently recorded huge volumes of oil flowing through it. During the previous year, the oil flow averaged at around 21 million barrels per day (b/d). This is almost equivalent to nearly 21% of global petroleum liquids consumption. The transit through the Strait represented almost one-fifth of the global liquefied natural gas trade in 2022.

The oil flows remained more or less flat when compared with the previous year during the initial half of the current year. The flows of oil products recorded surge during this period, whereas crude oil and condensate flows witnessed decline, primarily due to OPEC+ countries implementing tougher crude oil production cuts.

During the period between 2020 and 2022, volumes of crude oil, condensate, and petroleum products flowing through the Strait of Hormuz rose significantly by 2.4 million b/d. This was mainly triggered by recovery in oil demand after the economic downturn resulting from Covid-19 pandemic.