Middle Eastern oil exports have recovered above their pre-war average, supported by alternative shipping routes and adjustments by Gulf producers. However, continued threats to vessels and energy infrastructure are keeping transport costs high and limiting relief for international oil markets.
Regional exports excluding Iran averaged 24.6 million barrels per day in the week ending October 18, compared with a pre-war average of 23.3 million barrels per day, according to Kpler data reported by Gulf News. The figures highlight how producers have adapted their export networks despite disruptions around the Strait of Hormuz.
Alternative Routes Support Export Recovery
Saudi Arabia and the United Arab Emirates have used pipeline infrastructure and terminals outside the strait to maintain shipments. Saudi exports through the Red Sea and UAE loadings at Fujairah have provided alternatives to the disrupted Gulf passage.
Ship-to-ship transfers have also helped move supplies to international buyers. Nevertheless, the recovery remains uneven: the Financial Times reported that shipments through Hormuz were still more than 30% below their pre-conflict level, despite the improvement in overall regional exports.
Earlier Reuters reporting identified increased Saudi loadings from both Gulf and Red Sea terminals as a major contributor to the rebound. Shipping companies have also deployed additional large tankers to shuttle crude through Hormuz, while offshore transfers in the Gulf of Oman have faced capacity constraints.
Shipping Costs Keep Pressure on Prices
Higher export volumes have not brought a return to normal transport conditions. Shipping companies continue to face increased freight rates, insurance premiums and security expenses, raising the cost of delivering available supplies.
The recovery therefore reflects a more complicated and expensive transport network. Continued attacks and threats against vessels leave shipments exposed to further disruption, even as producers restore export volumes.
Oil prices have remained elevated amid those concerns. MarketWatch reported that prices had risen nearly 10% during October, with regional security risks, disrupted shipping routes and declining U.S. crude inventories supporting market tightness.
Refined Fuel Supplies Face Further Constraints
The improvement in crude flows has also failed to resolve difficulties transporting refined fuels.
Kuwait Petroleum Corporation chief executive Sheikh Nawaf Saud Al-Sabah said shortages of suitable tankers and maritime security risks were restricting refined-product exports. Speaking at the Dow Jones Energy Forum, he identified fuel transportation as a major bottleneck, even as crude shipments approached earlier levels.
The continuing constraints show why recovering oil exports may offer only partial relief to fuel buyers while shipping conditions remain unstable.
