Gulf Oil Exports Recover as Shipping Costs Surge

Oil exports from the Gulf have returned to or exceeded prewar levels as producers reroute shipments around the Strait of Hormuz, but the alternatives have sharply increased transportation costs. The recovery has not restored traffic through the strait to its earlier level, according to estimates from Kpler cited in reports on the region’s oil flows. Kpler data cited by Middle East Eye put Gulf-country exports at 24.6 million barrels per day in the week ending October 18, above a prewar comparison of 23.3 million barrels per day. The National, citing preliminary Kpler data for a broader set of regional oil flows, reported more than 24.5 million barrels per day for the same week, compared with 24.4 million in the week ending February 22. That tally includes routes and oil flows beyond crude exports alone and may change as additional vessel crossings are recorded. The recovery reflects the use of alternative pipelines, ports and ship-to-ship transfers. In those transfers, smaller tankers collect oil in the Gulf and pass it to larger vessels outside the strait. Saudi Arabia and the United Arab Emirates have pipelines that carry crude to export terminals outside Hormuz, while some...