The Hormuz crisis has forced a radical replumbing of the Middle East crude oil trade. As buyers and sellers alike seek to reduce their future exposure to the Strait of Hormuz, the system that gradually built up over the course of decades has been washed away by the conflict and a full return to the previous status quo is unlikely.
The contours of a new system are now gradually emerging. Saudi Arabia and the UAE are actively expanding their Hormuz bypass pipeline capacity, and Kuwait is in discussions with both over tapping into their systems. Iraq, too, is planning to develop contingency pipeline routes to the Mediterranean. Gulf producers also plan to expand their overseas storage capacities. (CONTINUED - 1210 WORDS)
