Post by : Badri Ariffin

In June, oil exports from the Gulf region surged over 3 million barrels per day (bpd) compared to May's figures. The total crude and condensate exports from Saudi Arabia, the UAE, Kuwait, Iraq, and Iran climbed past 10 million bpd, benefiting from restored shipping conditions in the Strait of Hormuz, aided by U.S. military interventions.

Data from Kpler reveals that combined exports from these five nations hit 10.07 million bpd in June, marking an increase of over 3.5 million bpd from the previous month. Despite this recovery, the levels are still about 40% lower than pre-conflict numbers.

Leading the Charge: UAE's Export Growth

The UAE significantly contributed to this rebound, facilitating the export of millions of barrels that had previously been halted. This boost in exports allowed suppliers to increase their output, helping stabilize oil prices back to pre-conflict ranges.

Kpler, Vortexa, and LSEG statistics show that UAE's crude exports hit a remarkable 3.7 million to 3.8 million bpd during June, indicating an increment of over 1 million bpd from May.

Vortexa's Monthly Assessment

Vortexa's estimates attribute Gulf crude and condensate exports to around 10.2 million bpd for June, a significant rise from about 7 million bpd in May. Nevertheless, these figures remain far below the previous year's 16.5 million bpd.

Normalization in the Strait of Hormuz

Following the June 17 ceasefire agreement between the U.S. and Iran, which restored shipping routes in the Strait of Hormuz, the backlog of crude awaiting transit in the Gulf began to diminish significantly.

According to Kpler analyst Johannes Rauball, approximately 23 million barrels of crude still awaited passage through the Strait of Hormuz after improvements eased the congestion. Floating storage peaked at 96 million barrels in late April.

Rising Tanker Traffic Indicates Confidence

Tanker movement through the Strait of Hormuz witnessed a marked improvement in late June.

Data indicates that from June 22 to June 28, 98 oil tankers navigated the strait, averaging around 14 vessels daily. This marked the highest weekly traffic since the beginning of the conflict, which included 47 fully loaded outbound tankers and 41 ballast vessels entering the Gulf, illustrating growing confidence among ship owners.

Saudi Arabia's Increased Shipments

Saudi Arabia also ramped up its crude exports in June. Kpler indicates an increase of 768,000 bpd, reaching 4.52 million bpd.

In the final week of June, Saudi shipments averaged approximately 6.3 million bpd, nearly aligning with January's export levels, supported by higher loadings from Ras Tanura.

Alternative Routes Ensuring Supply Stability

Amid the ongoing conflict, Saudi Arabia and the UAE managed to reroute parts of their oil exports through pipeline systems that bypassed the Strait of Hormuz. Iraq and Kuwait had limited alternatives for similar diversions.

Furthermore, the Abu Dhabi National Oil Company (ADNOC) utilized a tanker shuttle service to maintain export continuity despite interruptions affecting transit through the Strait of Hormuz.

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