Saudi Crude Exports Soar to Highest Level Since Iran War Began
Saudi Arabia's crude oil exports have surged to their highest level in seven months, despite ongoing tensions with Iran-backed militants. According to data from trade intelligence firm Kpler, Riyadh is exporting 6 million barrels per day in September, a nearly 80% increase over August's 3.4 million bpd. This comes despite the closure of the critical East-West oil pipeline due to damage sustained in a drone attack launched from Iraq.
The pipeline has acted as a crucial relief valve for the oil market during the Iran war, allowing Saudi Arabia to bypass the Strait of Hormuz and ship crude through the Red Sea terminal at Yanbu. However, with the pipeline now back online, crude exports have shifted back through the strait, which has seen a significant increase in traffic.
Oil exports through the Strait of Hormuz reached a seven-day average of 13.2 million bpd on Wednesday, compared to around 17 million bpd before the Iran war disrupted traffic. Saudi Aramco CEO Amin Nasser stated that 'temporary interruptions' to oil infrastructure typically last for days, not weeks or months.