Saudi Arabia's Tanker Strategy Amid the Ongoing Conflict

 Most by now get that since this conflict began it has created logistics and finished products problem, not a crude supply problem. Not sitting idly by, Saudi Arabia shifted to non traditional methods to move their product through the Strait of Hormuz. Using tankers that turn off their tracking to navigate the Strait, they then meet up with buyers tankers and transfer product in safer waters. Counts show between 15-25 tankers a day going through this process. Couple that with the US desperately looking for an exit ramp and Iran & Oman carving out shipping lanes and toll prices, Markets sold off substantially earlier in the week. Some respite even if Diesel pricing is still roughly $2 per gallon higher than when this all started. While a deal seems no closer than the last 60 days, traders seem content that products will move. Pressure on the White House to get a deal done will have to be jacked up to “ludicrous speed” ahead of mid terms and winter. Complacency on high fuel and ancillary products appears to be coming to an end.