Middle East oil exports rebound to pre-war levels despite Strait of Hormuz tensions
Middle East oil exports, excluding Iran, have surpassed 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, weekly shipments averaged above the pre-conflict level of 18 million barrels per day. Crude oil exports from the region hit pre-war levels in September, with at least 16.5 million barrels leaving the region, excluding Iran.
Kpler noted that 40% of the oil now bypasses 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 imposed by Iran on the Strait of Hormuz. Despite these efforts, experts caution that the situation remains far from normal, particularly for Iran, which faces a US counterblockade on its ports.
Saudi Arabia has benefited from the reactivation of its East-West pipeline, which links its 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 launched from Iraq, resumed operations on September 22. Similarly, the UAE has been able to bypass Hormuz through its pipeline linking Abu Dhabi’s fields to Fujairah 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.