Shell CEO Says Middle East Oil Flows Near Prewar Levels

Shell Plc Chief Executive Officer Wael Sawan reported that Middle East oil flows have rebounded to approximately 80% of pre-conflict levels. Speaking at the Energy Intelligence Forum in London, Sawan highlighted the region's resilience in maintaining supply commitments despite ongoing tensions.

Major banks and shipping analytics firms have corroborated this recovery, though precise tracking remains challenging due to vessels frequently switching off satellite signals in sensitive areas like the Strait of Hormuz and parts of the Red Sea.

The conflict has reignited energy security concerns, prompting the Group of Seven nations to announce a plan to release up to 100 million barrels of oil from emergency reserves. Middle Eastern producers are exploring new pipeline projects to diversify export routes.

Sawan cautioned that prolonged conflict could complicate supply management. While flows through Hormuz have improved, they have not fully normalized. The impact has been mitigated by reduced Chinese demand and increased production in other regions. However, he warned that the current measures may not be sustainable indefinitely.