Crude oil exports from the Middle East reached their highest level before the war in the last week of September, with exports increasing to 19.5 to 22.5 million barrels per day over four days of that week. These figures indicate a strong recovery in crude oil exports amid intensified attacks on tankers in the Strait of Hormuz.
Increase in Exports and Security Challenges
According to preliminary data from Kpler, the average crude oil exports in the last week of September reached 18.5 million barrels per day, showing a significant improvement compared to the average of 18 million barrels per day last year. These figures include oil movements in the Strait of Hormuz and the Red Sea, as well as exports from terminals and ship-to-ship transfers in the Gulf of Oman.
Read more: Iraq Transfers First Oil Shipment Out of the Strait of Hormuz
Liquefied natural gas (LNG) exports also reached their highest level since February in September. This recovery in exports provides a strong foundation for tanker markets, although traders have warned that improved logistics may reduce some of the significant inefficiencies that have affected rates.
The Role of Iraq in Oil Exports
Iraq is increasingly gaining more control over its oil exports from the war-torn region. Iraqi tanker company has transferred a 2 million barrel shipment from the Strait of Hormuz using a chartered VLCC tanker and has taken responsibility for this shipment beyond the strait. The company is now negotiating to purchase its own tankers as Baghdad seeks to rebuild its national maritime fleet, which has been damaged by war and sanctions.
While oil shipments are increasing, attacks on tankers have also intensified. In the early days of October, at least seven incidents involving tankers around the Strait of Hormuz have been reported, and UKMTO has issued daily warnings.
In one of the latest incidents, the 115,100-ton tanker Lipsi, managed by the D. Naoum company, was damaged on Sunday by an unknown project in the Strait of Hormuz, suffering damage in the engine room. All crew members have been reported safe. This tanker had joined the global fleet only six weeks after being delivered from China.
Other recent attacks have caused fires, blackouts, and loss of maneuverability in tankers passing through the strait. The security threat in this region is not limited to the Strait of Hormuz. A Marshall Islands-flagged tanker named Chrystal Sky has also reported several explosions near Yemen, one of which occurred just 100 meters to the right of the ship.
Read more: Tankers in the Strait of Hormuz Reach 80% of Pre-War Levels · Kpler: Oil and Product Exports from the Middle East Reach 22.5 Million Barrels per Day
