Middle East oil exports, excluding Iran, have surpassed their pre-war levels, according to data from the maritime tracking firm Kpler. The weekly average of shipments rose above the pre-conflict average of 18 million barrels per day for several days last week. This increase comes despite ongoing attacks on ships in the Strait of Hormuz. Kpler reported that crude oil exports reached pre-war levels in September, with at least 16.5 million barrels leaving the region excluding Iran.
The surge in oil exports is attributed to alternative routes being used to bypass the Strait of Hormuz, which has been a point of contention since the conflict began. Kpler stated that 40% of oil exports now bypass Hormuz, with most crude crossing the strait changing tankers offshore. The majority of the oil flowed through Saudi and United Arab Emirates pipelines. These figures include flows via the Red Sea, a route increasingly used to circumvent the blockade Iran is attempting to impose on Hormuz.
Iran still claims control over the Strait of Hormuz, and ships without its authorization risk coming under attack. However, more ships are successfully navigating the strait, and alternative routes meant to bypass the waterway are operating at full capacity. The situation remains complex, with Iran deprived of a large share of its own exports due to a US counterblockade of its ports. Despite this, the region's oil exports have rebounded, with Saudi Arabia and the United Arab Emirates benefiting from pipeline operations.
Saudi Arabia's East-West pipeline, which links the kingdom's main oil fields in the east to its Yanbu terminal on the Red Sea, resumed operations on September 22. The pipeline was shut down on September 11 after being hit by strikes launched from Iraq. The United Arab Emirates is also able to bypass Hormuz thanks to its pipeline linking Abu Dhabi's fields to Fujairah, a terminal just outside the strait on the Gulf of Oman. These pipelines have contributed to the increase in oil exports.
The rebound in oil exports has not had a lasting impact on oil prices, which have continued to fluctuate. Around 0310 GMT on Monday, Brent North Sea crude for December delivery fell 0.79% to $101.44 a barrel. Its US counterpart, West Texas Intermediate for November delivery, dropped 1.20% to $90.02. Experts stress that the situation in the region remains far from normal, with ongoing concerns about the security of oil shipments.
The increase in oil exports has been driven by the reactivation of pipelines and the use of alternative routes. The situation highlights the adaptability of oil exporters in the region, who are finding ways to navigate the complexities of the conflict. However, the ongoing uncertainty is likely to continue to affect oil prices and the global economy. The conflict has had far-reaching consequences, including the impact on oil supplies and prices.
The development has implications for the global economy, with ongoing concerns about the security of oil supplies. The situation in the region remains volatile, with ongoing attacks on ships and concerns about the stability of oil exports. The international community is closely monitoring the situation, with efforts to mitigate the impact of the conflict on the global economy.
Key points
- - Middle East oil exports have surpassed pre-war levels, with at least 16.5 million barrels leaving the region excluding Iran. - Alternative routes, including pipelines and the Red Sea, are being used to bypass the Strait of Hormuz. - The situation remains complex, with ongoing concerns about the security of oil shipments and the impact on the global economy.
