Oil exports prices for condensate from the main Gulf producers remained virtually stable during July, despite the upsurge in hostilities in Middle East however, volumes remain around 40% below pre-conflict levels, reflecting that strategic shipping routes continue to operate in an environment of high uncertainty.
According to data from maritime intelligence firm Kpler, combined exports from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait, and Iran averaged 10.7 million barrels per day in July, a 2% increase from the previous month. This stability has helped to ease concerns about a more severe disruption to the oil industry global oil supply.
Iraq promotes export growth
During July, Iraq led the increase in crude oil shipments by doubling its exports compared to June, this behavior was accompanied by higher flows from Kuwait and Iran, while Saudi Arabia and the United Arab Emirates registered declines in their shipments.
The increase in Iraqi exports was further supported by nine additional shipments transported on VLCC supertankers, according to Vortexa data. This move partially offset the reduced activity recorded by other producers in the region.
Regional security limits maritime traffic
Although export levels showed stability, maritime activity across the Strait of Hormuz and the Bab el-Mandeb Strait remains well below pre-conflict levels.
During July, reported incidents on these strategic routes increased, the International Maritime Organization received notifications of attacks against at least 14 vessels, compared to eight incidents recorded during June, which keeps the risks to hydrocarbon transport high.
Oil exports grow as Kuwait’s production increases
Kuwait raised its oil production reached 1.971 million barrels per day in July, up from approximately 1.65 million the previous month. This increase helped bolster part of the regional supply in a context marked by logistical constraints and higher operating costs.
For its part, Saudi Aramco warned that the global energy market continues to absorb the impact of the conflict. Its CEO, Amin Nasser, noted that global inventories have fallen by more than 2.6 billion barrels since the start of hostilities and estimated that rebuilding those reserves could take around 18 months, even if major shipping routes were to fully resume operations.
The Red Sea remains a critical point for crude oil trade
Saudi exports from the port of Yanbu declined during the second half of July due to increased attacks near the Bab el-Mandeb Strait. As a result, several carriers altered their routes to reduce risk exposure, increasingly using the SUMED pipeline and alternative routes through the Suez Canal.
This scenario confirms that the international oil supply remains relatively stable thanks to the adaptability of producers and logistics operators. However, persistent geopolitical risks continue to hinder the recovery of Gulf exports and keep market attention focused on developments in the world’s major energy routes.
Source: Investing.com
Photo: Shutterstock
