Crude oil exports from the Middle East have seen a significant increase in recent weeks. This increase in exports has been particularly observed during four days of the last seven days of September, occurring amidst ongoing attacks on ships passing through the Strait of Hormuz. These developments have caused fluctuations in oil prices in the global market.
Impact of Middle Eastern Developments on Oil Prices
According to shipping data, Brent crude oil prices rose by 5 cents on Monday's trading to reach $102.30 per barrel. Additionally, West Texas Intermediate (WTI) crude oil was traded at $90.62 per barrel, down by 49 cents. These fluctuations have occurred following the increase in crude oil exports from the Middle East and the commitment of G7 member countries to increase oil supply to the global market.
Analysts believe that the rise in heating oil and diesel prices may be due to the suspension of petroleum product exports from China. In this regard, Tamas Varga, an analyst at PVM Oil, stated that this situation could likely limit the outlook for refining product supply in the Far East.
Wars and Tensions in the Middle East
Currently, concerns about ongoing disruptions caused by conflicts between the United States, Israel, and Iran continue to impact the oil market. Additionally, the Houthis have fired ballistic missiles and drones towards Aramco facilities in Riyadh in response to air and missile attacks by Saudi-led forces. This situation has increased geopolitical risks in the oil market.
Amin Nasser, CEO of Saudi Aramco, stated in a press conference that crude oil and refined fuel supply will likely continue to face limitations. This situation may require two years to refill global oil reserves after emergency withdrawals.
Furthermore, OPEC+ has decided to postpone the review of production quotas for its members in 2027. The war in Iran has also disrupted oil production capacity development projects in the Middle East and created uncertainty regarding potential production capacity in the future.
Finally, West Texas Intermediate (WTI) crude oil prices fell by 15 cents to $90.96 per barrel, while Brent oil was traded at $102.70, up by 44 cents. These fluctuations reflect the direct impact of Middle Eastern developments on the global oil market.
Read more: Kpler: Middle Eastern oil and product exports reached 22.5 million barrels per day · Ghalibaf: The Strait of Hormuz will not reopen until Iran's seven conditions are met
