The increase in crude oil exports from major Middle Eastern producers in September has been recorded at 12.8 million barrels per day, the highest export level since the war began in February. This increase in exports, particularly from Saudi Arabia and the United Arab Emirates, has occurred in the context of Donald Trump, the President of the United States, rejecting Iran's peace proposal.
Oil Market Developments and Their Impacts
The rise in oil prices in the global market follows these significant developments. Brent crude oil prices increased by more than 2% in Monday's trading, reaching $106.92 per barrel. Additionally, West Texas Intermediate (WTI) crude oil was traded at $94.49, up by $2.08. According to Hamad Hussein, a senior economist in the field of climate and commodities, Trump's rejection of Iran's peace proposal has been cited as one of the main reasons for this price increase.
Read more: Iran is strengthening its position in the global market by increasing oil production
Increase in Exports and Changes in the Strait of Hormuz
Initial data from Kpler indicates that oil flow through the Strait of Hormuz this month will reach about 7.4 million barrels per day. Saudi Arabia, after attacks that damaged its East-West pipeline, has shifted part of its exports from the port of Yanbu in the Red Sea to the port of Ras Tanura on the eastern coast. These changes in the Strait of Hormuz and the increase in exports have clearly impacted the energy market dynamics.
Meanwhile, concerns about the ban on U.S. diesel exports are also increasing as a pressure factor for lowering prices. This action could limit U.S. refinery production and affect global oil prices. According to Goldman Sachs, the ban on U.S. diesel exports could increase European wholesale diesel prices by $3 per barrel.
Ultimately, it seems that the oil market continues to face a supply shortage, which could influence prices in the future. Given these developments, traders should closely monitor market conditions and political changes.
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