Top US Oil Trade Group Opposes Hormuz Tolls

The American Petroleum Institute opposes tolls or transit fees for vessels crossing ​the Strait of Hormuz, the top U.S. oil industry trade ‌group's chief executive Mike Sommers told Reuters in an interview on Tuesday.

Reuters reported that Oman has presented Iran with a plan backed by GCC states ​to manage the Strait of Hormuz, which includes Tehran ​collecting voluntary fees from vessels using the waterway, according ⁠to a GCC source and a Western diplomat.

Here are some ​more details:

"I think it's unlikely that we would support any kind ​of new tolling authority, particularly one that's backed up by the threat of more bombing in the Strait of Hormuz," Sommers said. Iran has maintained a chokehold ​on the Strait since the United States and Israel began ​bombing the country in February, sending oil prices soaring. Increasing vessel movements through the ‌strait ⁠will be key to returning oil markets to normalcy, but Iran must not be allowed to control the waterway, Sommers said. The U.S. and other top oil consumers have been drawing crude and ​fuel from inventories ​at a record ⁠pace.

The U.S. Congress should consider investing in upgrading the U.S. Strategic Petroleum Reserve, Sommers said, noting ​that SPR caverns were designed for fast drawdowns ​but are ⁠difficult to refill and maintain. Congress should also consider opening new SPR sites along the U.S. West Coast, an idea President Donald Trump's ⁠administration ​considered prior to the start of ​the Iran war, Sommers said.