Middle East Oil Exports Rebound in September on Surging Saudi Shipments

Crude oil exports from major Middle East producers surged in September to their highest level since February, driven by a sharp rebound in shipments from Saudi Arabia and the United Arab Emirates. Preliminary data from analytics firm Kpler showed that regional exports climbed to 12.8 million barrels per day (bpd) for the month.

Saudi Arabia Reroutes Shipments

The increase was largely attributed to a strategic shift by Saudi Arabia, the region's top exporter. The Kingdom diverted crude exports away from its Red Sea port of Yanbu, following attacks that damaged its East-West pipeline, and toward its Ras Tanura terminal in the Gulf.

This rerouting led to a significant jump in the country's outbound volumes. Key figures from Kpler include:

• Total Saudi Exports: Rebounded to approximately 5.4 million bpd in September, more than doubling the 2.446 million bpd shipped in August.
• Ras Tanura Port Exports: Skyrocketed to 3.6 million bpd, up from just 929,000 bpd the previous month.

Strait of Hormuz Traffic Increases

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The redirection of Saudi crude boosted traffic through the Strait of Hormuz, a critical chokepoint for global energy supplies. Exports via the strait were set to reach about 7.4 million bpd in September.

Kpler's data indicated that 19 Very Large Crude Carriers (VLCCs), each carrying 2 million barrels of Saudi oil, exited the strait last week alone. The firm noted that these figures are preliminary and exclude any vessels that may have turned off their transponders to avoid detection.

Supply Remains Below Pre-Conflict Levels

While the September rebound marks a positive development for supply, regional exports remain well below historical levels. The current volume of 12.8 million bpd is still approximately 6 million bpd lower than the 18.8 million bpd that the region exported in February.

This ongoing deficit underscores the significant disruption to the global oil market since the conflict mentioned in the source began. Before the disruption, the Strait of Hormuz handled about 20% of the world's daily crude oil and liquefied natural gas supply, according to Reuters.