Oil shipments from the Middle East are showing little sign of buckling despite Iran's more frequent attacks on merchant ships in the region. Crude and condensate flows from the Persian Gulf hit a high of 24.6 million barrels a day in the week to Oct. 18, according to data provider Kpler. However, shipments remain volatile and figures for October average remain below prewar levels of 18.5 million barrels a day.
Loadings happen in bunches, with ships traveling in convoys through the Strait of Hormuz, shuttling cargoes to tankers waiting outside before returning to reload. The UAE, Saudi Arabia and Kuwait are among nations shuttling oil through Hormuz in their own tankers, delivering cargo to customers' vessels outside the strait. Saudi Arabia boosted production by a third in September to over 8 million barrels a day, while the UAE has pushed production to record-high levels. UK Maritime Trade Operations reported 32 attacks on ships around the Arabian peninsula in October alone, compared with 16 in September.
Despite the surge in attacks, oil flow through the strait has remained relatively resilient as producers compete for customers to make up for billions of dollars in missed sales.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing