Crude oil prices continue their upward trend following reports of a significant increase in exports from the Strait of Hormuz, which began in early September. Currently, Brent oil is priced at $107.37 and West Texas oil at $94.31 per barrel. This price increase is influenced by reports regarding a potential ban on diesel fuel exports by the United States.
Export Volume from the Strait of Hormuz
Kpler reports indicate that the daily oil export volume from the Strait of Hormuz has reached 12.8 million barrels, which exceeds the expectations of many analysts. These estimates have been released despite Kpler's shipping reports indicating that vessel traffic has been significantly affected. These reports also note that this data excludes vessels operating in dark mode or ship-to-ship transfers.
Read more: Increase in Crude Oil Prices and Diesel Crisis in the Global Market
Transportation Impacts on the Oil Market
Saudi Arabia has turned to ship-to-ship transfer methods due to attacks by Yemen's Ansar Allah on energy infrastructure, including the East-West pipeline and Yanbu facilities in the Red Sea. These methods have contributed to increased pressure on oil prices and significantly raised the costs of unloading crude oil from the Persian Gulf.
Tim Waterer from KCM Trade noted that "a clearer picture of the increased oil export volume from the Persian Gulf is emerging, but a significant portion of this increase is still dependent on ship-to-ship transfer methods. These methods are more efficient and cost-effective compared to normal operations, which is why oil prices remain high."
Additionally, shipping rates have reached their highest historical levels, adding to the financial burden of crude oil exports from the Middle East. Furthermore, in additional challenges, maritime traffic has rerouted from the Red Sea to the Cape of Good Hope in South Africa, which increases travel times, including for oil tankers.
Read more: Return of 60% of Petrochemical Capacity to Production Cycle in Assaluyeh and Mahshahr · Qatar Energy Extends Force Majeure on LNG Deliveries to Asia and Europe
