Gulf crude exports jump in July but shipments slowing on renewed hostilities, data shows
XLE•Gulf crude exports rebound in early July
Gulf countries boosted crude oil and condensate exports in the first half of July to the highest levels since before the Iran war began in late February, shipping data showed, although flows through the Strait of Hormuz are now slowing as fighting escalates.
Crude and condensate exports from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Iran rose about 16% from the whole of June's daily average to 12 million barrels per day (bpd) in the first half of July, Kpler data showed.
Vortexa estimated exports during the period at an even higher 13.06 million bpd.
Saudi Arabia, Iran and Iraq led the increase in the first half of July, Kpler said, while Vortexa estimated Iraq posted the largest month-on-month increase, while UAE exports eased from record June levels.
Red Sea risk adds another threat to supplies
Creating a potentially significant extra risk to global oil supplies, Iran has instructed Yemen's Houthis to be prepared to disrupt traffic through the Red Sea if the United States targets Iranian energy infrastructure, sources told Reuters on Thursday.
Saudi Arabia has diverted most of its energy exports through its Red Sea port of Yanbu. So far in July, 75% of its 5.29 million bpd crude and condensate were exported from Yanbu, Kpler data showed.
Strait traffic slows as tensions re-escalate
Shipments through the strait are already declining as strikes by both sides have re-escalated, dropping to just three commodity tankers on Thursday, the fewest daily transits since May, shipping data showed.
"We're seeing a slowdown in activity, which means that countries will have to reduce output, which decreases the amount of crude that will be shipped," Kpler analyst Johannes Rauball said.
