TotalEnergies SE is profitably moving crude through the Strait of Hormuz by buying Middle Eastern oil at steep discounts that more than offset higher shipping costs, CEO Patrick Pouyanne said. Crude from Iraq and Qatar is reportedly selling for around $50 to $60 a barrel while Brent trades above $90, creating a cushion that exceeds the roughly $10-a-barrel extra cost of sending a VLCC through the strait. Reuters reported that TotalEnergies made more than $1 billion from major Middle Eastern crude trades earlier this year after its traders anticipated the worsening regional situation. The company plans to invest in alternative export infrastructure, including the Baghdad-Syria pipeline and an expansion of the UAE's Habshan-Fujairah pipeline, which currently handles about 1.8 million barrels per day and could double in capacity.
TotalEnergies SEProfits from trading discounted Hormuz crude and trading strength.
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