Saudi Arabia's oil exports are holding near wartime highs this month despite a wave of attacks on the kingdom's energy infrastructure and an increase in reported Iranian strikes on tankers in the Strait of Hormuz, according to preliminary data from ship-tracking firms. The kingdom has shipped a total of 6.5 million barrels a day so far in October from its west and east coasts, compared with 6.6 million all of last month, according to data provider Vortexa. Tankertrackers.com estimates overall exports are at prewar levels of 6.99 million barrels a day, while Kpler puts the figure at 5.4 million, lower than in September.
The gap between the datasets stems largely from tankers switching off satellite transponders to obscure their location and reduce the risk of attacks. That makes it harder for traders and investors to get a clear picture of Gulf exports, which are crucial for setting global prices. Exports began picking up after Saudi Arabia ramped up shipments through the Strait of Hormuz following a shutdown of the East-West pipeline after an attack last month. The link's resumption has reopened both the Red Sea and Hormuz routes, helping the kingdom benefit from oil's wartime price surge while fending off attacks from Yemen's Houthi militants.
Aramco has increased Red Sea exports, mainly from the port of Yanbu, to 2.5 million barrels a day this month, up from 2.4 million in September. Exports through the Persian Gulf ticked lower to 4 million barrels a day from 4.2 million, amid repeated attacks interrupting flows. Aramco has also asked some Asian buyers to resume collecting oil from Yanbu from November, and has told European buyers with canceled contracts they can bid for spot cargoes.
Stronger flows from elsewhere in the Gulf have eased pressure on physical supply prices. The Oman-Dubai crude differential fell to around $6 a barrel on Tuesday, compared with almost $34 in September.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing