Middle East Oil Exports Return to Pre-War Levels Amid War-Related Disruptions
The energy intelligence firm Kpler has reported that average Middle East oil exports excluding Iran reached 24.6 million barrels per day (bopd) in the week ending October 18, a significant increase from the pre-war average of 23.3 million bopd. This surge in exports comes despite ongoing disruptions caused by the war.
At least 16.5 mbd of crude left the region excluding Iran between September 1 and 28, according to Kpler’s data. The increased exports are largely attributed to alternative routes being used to bypass the Strait of Hormuz, which has seen a significant increase in shipments avoiding the strait. Prior to the war, only 17% of regional crude exports bypassed Hormuz, but this share has now risen to 40%.
Alternative Routes Carry Millions of Barrels
Saudi and UAE pipelines have played a crucial role in redirecting supplies toward Red Sea and Gulf of Oman export terminals. Ship-to-ship transfers have also surged, with over 70% of crude crossing Hormuz in August changing tankers offshore near Fujairah or Sohar.
Meanwhile, Saudi export routes proved adaptable, with shipments shifting between Gulf and Red Sea terminals as disruptions affected loading operations. However, the increased reliance on alternative routes has led to higher shipping costs, with tanker charter rates and war-risk insurance premiums surging, according to the Financial Times.
Despite these challenges, Middle East oil exports have managed to return to pre-war levels, highlighting the region’s resilience in the face of adversity. As global demand for energy continues to grow, it remains to be seen how the region will continue to adapt and respond to future disruptions.
Original Article: 24.6 million barrels of oil per day: Mid-East oil finds a way around war — but fuel supplies still lag — Gulfnews