Middle East Oil Shipments Surge Despite Tanker Attacks and High Prices

Despite near-daily attacks on tankers by Iran, oil shipments from the Middle East have surged above prewar levels in late September. According to Kpler, volumes exceeded 18 million barrels per day for several consecutive days, indicating that producers and shipping companies are adapting to the risks. However, the threat to shipping has not disappeared, and global oil prices remain above $100 per barrel, about 40% higher than before the conflict.

The Group of Seven countries agreed to release 100 million barrels of diesel and crude oil from strategic reserves to ease price pressures. This move follows US President Donald Trump's threat to ban US diesel exports. However, limited global refining capacity means the impact on prices will likely be temporary and limited.

In Yemen, the Saudi-backed government launched a military campaign against the Houthis, who claimed to have attacked a Saudi Aramco facility. Meanwhile, OPEC+ countries decided to keep their November oil production targets unchanged. Saudi Arabia cut November oil prices for Asian buyers to their lowest level in six years, while prices for northwestern Europe and the Mediterranean rose.

Canadian company Suncor Energy agreed to sell stakes in three offshore oil assets to London-based Ithaca Energy for 1.2 billion Canadian dollars ($841.69 million). This deal marks Ithaca Energy’s first international acquisition as it seeks to reduce its dependence on declining UK North Sea production. The growth of recycling is also creating new sources of materials for the energy transition, including old batteries, decommissioned solar panels, and wind turbines.