Middle East Oil Exports Rebound Despite Strait of Hormuz Tensions
Middle East oil exports, excluding Iran, have surpassed their pre-war levels for the first time since the US and Israel launched their offensive against Iran in late February. According to data from maritime tracking firm Kpler, the weekly average of shipments rose above the pre-conflict average of 18 million barrels per day. Crude oil exports reached pre-war levels in September, with at least 16.5 million barrels leaving the region.
Kpler reported that 40% of oil shipments now bypass the Strait of Hormuz, with most crude changing tankers offshore. Alternative routes, including pipelines in Saudi Arabia and the United Arab Emirates, have been operating at full capacity to circumvent the blockade Iran is attempting to impose on Hormuz. Despite this rebound, experts note that the situation remains far from normal, particularly as Iran continues to face a US counterblockade on its ports.
Saudi Arabia has benefited from the reactivation of its East-West pipeline, which links the kingdom’s main oil fields to the Yanbu terminal on the Red Sea. The pipeline, which was shut down on September 11 after being hit by strikes from Iraq, resumed operations on September 22. The UAE also bypasses Hormuz through a pipeline connecting Abu Dhabi’s fields to Fujairah, a terminal just outside the strait on the Gulf of Oman.
On October 5, Brent North Sea crude for December delivery fell 0.79% to US$101.44 a barrel, while its US counterpart, West Texas Intermediate for November delivery, dropped 1.2% to US$90.02.