Crude oil exports from key Middle East producers, notably Saudi Arabia, have rebounded in September to 12.8mn bpd, the highest level since the start of the US/Iran war in February, according to a Reuters report, drawing on tracking data from Kpler
However, exports from Saudi Arabia, the UAE, Iraq, Oman, Qatar, Kuwait and Iran are still around 6 mn bpd below the 18.8mn bpd recorded in February, and with President Trump having rejected Iran's latest offer to reopen the Strait, it does not look as if a full reopening of the waterway is on the cards any time soon.
Saudi Arabia is on course to ship around 5.4mn bpd in September, rebounding from 2.446mn bpd in August, the data indicates, the highest level since the start of the war and approaching its 2025 average.
Having closed its East-West pipeline as a precautionary measure following attacks from the Houthis on its energy infrastructure, the Kingdom had rerouted some of its oil exports through the Strait of Hormuz, using a shipping lane opened by the US military along the Oman coast. 19 very large crude carriers, carrying 2mn bpd of Saudi oil each, passed through the Strait of Hormuz last week, according to Kpler data. Saudi Arabia is now reported to have restarted exports through the East-West pipeline, which runs from the Abqaiq oilfield in Eastern province to Yanbu on the Red Sea and has a capacity of 7mn bpd. Aramco had been able to keep the oil flowing by directing around 70% of its exports through the pipeline, enabling it to bypass the Strait of Hormuz.
Aramco stresses resilience
At the announcement of the company’s second quarter results in August, Aramco’s CEO Amin H Nasser made a point of stressing the company’s resilience and the agility of its business and operations to withstand and respond to rapidly changing market conditions.
“Despite the unprecedented disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalising on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West pipeline, storage capacity and export terminals,” he said at the time. This has enabled Aramco to sustain production and exports while advancing key projects, he added.
The CEO reiterated this message in an interview with Nokkei Asia recently, when he noted that Aramco continues to explore additional export routes and expand its storage capacity outside the Kingdom to maintain supplies to global markets. He said operations affected by disruptions can be restored within days, noting that Aramco has multiple options for meeting customer demand and that it possesses the infrastructure and operational capabilities necessary to continue operating under challenging circumstances.
Middle East oil exports rebound to highest level since start of war
Saudi Arabia's exports are now at their highest level since February. (Image source: Adobe Stock)
