West Asia crude exports climbed back above pre-war levels in September as Saudi Arabia and other Gulf producers ramped up shipments, even as a sharp rise in attacks on commercial vessels raised fresh concerns over the security of the Strait of Hormuz.
West Asia crude exports recovered to pre-war levels in September despite a growing number of attacks on tankers crossing the strategically vital Strait of Hormuz, according to shipping data from Kpler and Vortexa.
A seven-day moving average of crude exports from the region reached 18.3 million barrels per day (bpd) on September 30, provisional Kpler data showed. Shipments exceeded pre-war levels on 14 days during September, including cargoes moving through the Strait of Hormuz, the Red Sea and other export terminals.
In the 12 months before the start of the US-Israeli war with Iran, crude exports from the region averaged around 18 million bpd, according to Kpler.
The increase has been driven largely by Saudi Arabia, which has been loading crude from both the Red Sea and the Gulf, Kpler said. The move comes weeks after an attack on the kingdom’s East-West pipeline on September 10.
Iraq has also increased shipments after securing Iranian permission for Iraqi oil tankers to transit the Strait of Hormuz. The country’s state-owned oil tanker company and some refiners have chartered vessels to load Basrah crude inside the strait.
More from BusinessThe increase in supplies could also ease tightness in the global oil market, particularly for Asian refiners, Tang said. Liquefied natural gas shipments through the Strait of Hormuz also rose in September to their highest level since February.
Tanker attacks raise fresh risks
The recovery in oil flows comes as commercial shipping faces an increasingly unpredictable security environment around the Strait of Hormuz. Shipping intelligence service Marisks said at least seven incidents involving vessels were reported in the past week.
The very large crude carrier Kazimah III was reportedly hit by an unknown projectile on October 1 while transiting the strait, triggering a fire onboard. Separately, the Liberian-flagged Aframax tanker Lipsi was reportedly struck by an unknown projectile on October 4, damaging its engine room.
The crews of both vessels were reported safe, with no casualties. The United Kingdom Maritime Trade Operations agency has reported at least one attack a day in the Strait of Hormuz or the Gulf of Aden since October 2.
Before the war began on February 28, around 125 large commercial vessels typically passed through the Strait of Hormuz each day. The chokepoint handles roughly 20 per cent of global crude oil and LNG supplies, making any prolonged disruption a major risk for global energy markets.
