Middle East Oil Exports Recover Despite Hormuz Attacks

SINGAPORE: (News Desk) – Middle Eastern oil exports, excluding Iran, have climbed back above pre-war levels despite continued attacks on vessels in the Strait of Hormuz, according to maritime tracking firm Kpler.

Kpler data showed that weekly shipments exceeded the pre-conflict average of around 18 million barrels per day for several days, marking the first such increase since the United States and Israel launched their offensive against Iran at the end of February.

The company said crude oil exports from the region had returned to pre-war levels in September, with at least 16.5 million barrels per day being shipped from countries excluding Iran.

Kpler said around 40 percent of regional oil exports are now avoiding the Strait of Hormuz, while a significant portion of the crude passing through the waterway is being transferred between tankers offshore.

A large share of the region’s oil is now moving through pipelines operated by Saudi Arabia and the United Arab Emirates, providing an alternative to the strategically important waterway.

Oil shipments through the Red Sea have also increased as exporters seek routes around the restrictions Iran is attempting to impose on the Strait of Hormuz. Before the conflict, roughly one-fifth of global petroleum supplies passed through the strait.

Although Iran continues to claim control over the waterway and vessels operating without its approval face the risk of attack, an increasing number of ships are successfully navigating the area. Alternative export routes are also operating at near-full capacity.

Analysts, however, cautioned that the recovery does not mean regional oil markets have returned to normal. Iran continues to face significant restrictions on its own exports because of a US counterblockade affecting its ports.

Saudi Arabia has particularly benefited from the reopening of its East-West pipeline, which connects major oil fields in the kingdom’s eastern region with the Yanbu export terminal on the Red Sea.

The pipeline was shut down on September 11 after being damaged by strikes launched from Iraq but resumed operations on September 22, according to Kpler analyst Amena Bakr.

The United Arab Emirates can similarly bypass the Strait of Hormuz through a pipeline connecting Abu Dhabi’s oil fields with Fujairah, a major export terminal located outside the strait along the Gulf of Oman.

Meanwhile, oil prices moved lower in early trading on Monday. Around 0310 GMT, Brent crude for December delivery fell 0.79 percent to $101.44 per barrel, while US West Texas Intermediate crude for November delivery declined 1.20 percent to $90.02 per barrel.