Middle Eastern oil exports have returned to prewar levels as shipping companies use alternative routes to bypass chokepoints targeted in the conflict. In the week to October 18, shipments from Gulf oil producers excluding Iran averaged 24.6 million barrels a day, higher than the 23.3 million prewar average, according to Kpler data. This takes the seven-day average to its highest level since mid-February, before the US and Israel struck Iran, igniting a war that has stymied exports from the world's biggest oil-producing region. Despite the rebound in overall exports, figures remain far more volatile than before the war. Shipments through the Strait of Hormuz itself are still more than a third lower than prewar levels. Saudi Arabia has routed significant oil through its Red Sea port of Yanbu in response to Gulf attacks, though flows have dipped periodically following pipeline strikes. Volumes have rebounded after repairs were completed. This month has seen an uptick in vessel attacks, with 28 incidents reported in October alone.
Despite the export rebound, oil prices have risen recently due to strain in some product markets. Brent crude hit its highest level since May on Tuesday, trading at $111.03 on Wednesday, up 2.1 percent. The data, compiled by Kpler and including ship-to-ship transfers and Red Sea flows, reflects the complex routing changes reshaping regional trade flows amid ongoing conflict.
Source: Financial Times Companies · Summarized by HeadlinesBriefing