Hormuz "Death Route" Turns Into Lucrative Business: Swiss Trader Takes Risk to Ship Oil, One Voyage Rakes in $60 Million Gross Profit
BlockBeats News, May 25th, against the backdrop of nearly a blockade in the Strait of Hormuz, a super tanker carrying about 2 million barrels of Iraqi crude oil successfully passed through the blockade, drawing global attention to the oil market. The Swiss trading company behind the scenes, Lytton SA, also sparked market discussion as it garnered approximately $60 million in gross profit from a single transaction.
According to reports, the oil tanker named "Agios Fanourios II" was originally scheduled to transport crude oil to Vietnam. During the voyage, it was repeatedly intercepted by Iran and the US, undergoing several rounds of diplomatic coordination. The shipment was eventually completed successfully with the intervention of Vietnam's national oil company, Petro Vietnam Oil Corp.
Due to the tense situation in the Strait of Hormuz, Iraqi crude oil faced a significant discount in the Gulf. Sources revealed that Lytton SA purchased the oil at a price $18 below the international benchmark price per barrel and then sold it at a high premium outside the Gulf, creating an astonishing arbitrage opportunity.
However, high profits also come with high risks. The single shipment's maritime transportation cost amounted to $35 million to $40 million. The vessel was even asked to sail to the port of Abbas in Iran and was intercepted by the US military after exiting the strait for investigation. Eventually, the US released the vessel after confirming that the cargo was not Iranian oil.
With drastic fluctuations in oil prices and continued tension in the Middle East, the global oil trading market is experiencing a rare window of windfall profits. Reports indicate that currently, the price differential in some crude oil trades has widened to $20 to $30 per barrel, with single-ship profits reaching tens of millions of dollars, attracting more and more traders and shipowners to "risk crossing" the Strait of Hormuz.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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