Gulf Oil Exports Hit Pre-War Levels Amid Shift in Transportation Structure

Crude oil exports from the Persian Gulf region have exceeded 16 million barrels per day, according to analytics firm Kpler. This marks a return to pre-war levels, with most of these exports passing through the Strait of Hormuz.

However, there has been a significant shift in the transportation structure since the war began. While 83% of oil exports used to pass through the strait, now around 60%, or approximately 9.9 million barrels per day, physically cross it. The remaining oil is being transported via pipelines and other routes in Saudi Arabia and the United Arab Emirates.

It's worth noting that more than 70% of the oil passing through the Strait of Hormuz was transferred from one tanker to another at sea in the Gulf of Oman in August, as part of a new export system where vessels deliver oil to larger tankers outside the Persian Gulf. This shift has become crucial due to Iran's influence on the region's oil exports being weakened by these new routes and pipelines.

Energy market analyst Ellen R. Wald highlighted that despite the recovery of flows, trade conditions are far from normal. She pointed out that higher insurance costs, threats to shipping, and reliance on US military escort maintain a 'war premium' in oil prices.