Crude shipments from West Asian Gulf region return to pre-war levels despite Hormuz disruptions

Disruptions to energy supplies through the Strait of Hormuz notwithstanding, crude shipments from the West Asian Gulf region, excluding Iran, have returned to pre-war levels as countries cut dependence on oil tankers to navigate through the choked strait. According to maritime intelligence and research firm Kpler, at least 16.5 million barrels per day (mbd) of crude left the region between Sept 1 and 28, matching the prewar average. During the peak of the West Asia war in March, the average was 10.5 mbd.

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While 83% of the region’s crude crossed Hormuz before the war, 40% was exported in Sept through pipelines in Saudi Arabia and the UAE without crossing the key chokepoint. Of the remaining 60% that physically crossed Hormuz, most was moved using shuttle tankers, Emmanuel Belostrino, head of global crude and geopolitical market data at Kpler, said in his analysis. Belostrino said more than 70% of the crude that crossed the Strait of Hormuz in Aug changed tankers offshore in the Gulf of Oman.

Crude via other routes made up the difference

Confirmed crude crossings were still more than a quarter below the pre-war level, but volumes moving through alternative routes had more than doubled and made up almost exactly the difference. Saudi pushed more crude through the east-west pipeline to Yanbu, with loadings rising from 0.8 mbd before the war to 4.3 mbd in June. UAE sent crude through the Abu Dhabi crude oil pipeline to Fujairah, where loadings rose from 1.1 mbd to 2.7 mbd.

325 million barrels released from oil reserves: IEA

The International Energy Agency said member countries had released 325 million barrels of oil and oil products from strategic reserves, out of 400 million barrels pledged in March.

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