Maritime tracking company Kepler has announced that Middle East oil exports, excluding Iran, have surpassed pre-war levels for the first time last week. This increase in exports has occurred amidst ongoing attacks on vessels in the Strait of Hormuz.
Increase in Oil Exports and Security Threats
According to a report examining the status of four days from the last seven days of September and the first day of October, the weekly average of oil shipments during this period has exceeded the average figure of 18 million barrels per day prior to the hostilities. This data indicates that crude oil exports in September reached pre-war levels, with at least 16.5 million barrels of oil per day leaving the region, excluding Iran.
Kepler has also noted that currently 40% of oil is passing through routes outside the Strait of Hormuz. Most of the crude oil that passes through this strait is transferred at sea from one tanker to another. These route changes have occurred due to Iran's attempts to impose a blockade in the Strait of Hormuz.
Use of Alternative Routes
Shipments passing through the Red Sea are increasingly being used to circumvent the blockade imposed by Iran. Before the onset of hostilities, about one-fifth of the world's oil supply passed through this strait, but with the increase in exports via alternative routes, this amount has decreased.
Iran continues to claim control over the Strait of Hormuz and repeatedly states that vessels lacking Iranian permission are at risk of attack. However, reports indicate that more vessels are passing through and exiting the area, with new routes operating at full capacity.
In one of the latest incidents posing a danger to vessels, the UK Maritime Trade Operations Center reported an incident about 60 nautical miles south of the port of Al-Mokha in Yemen. According to the report, the crew of a tanker observed several explosions near the ship. Despite these threats, the tanker crew is safe, and no environmental consequences have been reported so far.
The increase in oil exports occurs while experts say the situation remains far from normal. Iran has lost a significant portion of its oil exports due to the U.S. maritime blockade against its ports. Saudi Arabia and the United Arab Emirates are effectively bypassing the Strait of Hormuz using new pipelines, which has contributed to the increase in exports from these countries.
Last week, the price of North Sea Brent crude oil for delivery in December fell by 0.79% to $101.44 per barrel. Additionally, the price of West Texas Intermediate crude oil for delivery in November also decreased by 1.20% to $90.02 per barrel.
