Middle East Oil Exports Rebound Despite Strait of Hormuz Blockade

Middle East oil exports, excluding Iran, have surpassed pre-war levels for the first time since the conflict began in late February, according to data from maritime tracking firm Kpler. Despite ongoing attacks in the Strait of Hormuz, the weekly average of shipments rose above the pre-conflict average of 18 million barrels per day.

In September, crude oil exports from the region, excluding Iran, reached at least 16.5 million barrels per day. Kpler reported that 40% of these exports now bypass the Strait of Hormuz, with most crude changing tankers offshore. Alternative routes, particularly through Saudi and United Arab Emirates pipelines, have been operating at full capacity to avoid the blockade imposed by Iran.

Saudi Arabia has reactivated its East, West pipeline, which links its main oil fields to the Yanbu terminal on the Red Sea, allowing it to bypass Hormuz. Similarly, the UAE uses a pipeline connecting Abu Dhabi's fields to Fujairah, just outside the strait. Despite these adaptations, experts warn that the situation remains far from normal, as Iran continues to face a US counterblockade on its ports.

On Monday, Brent North Sea crude for December delivery fell 0.79% to $101.44 a barrel, while West Texas Intermediate for November delivery dropped 1.20% to $90.02.