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Middle East Crude Oil Exports Back at Prewar Levels
(Wall Street Journal) Giulia Petroni - Middle East crude oil exports are back at prewar levels. Goldman Sachs estimates that crude exports from Persian Gulf producers reached 19 million barrels a day over the past week through Monday, driven by increased shipments through the Strait of Hormuz. Iran's ability to choke off oil flowing through Hormuz is breaking down and the country has been unable to move its own crude through Hormuz since the U.S. reinstated its maritime blockade in July. J.P. Morgan analysts said with flows through Saudi Arabia's East-West pipeline recently restored, the 10-day average of crude exports from the Middle East has rebounded to 17.5 million barrels a day, or 98% of prewar levels. Yet, stalled U.S.-Iran talks to end the war and persistent threats by Yemen's Houthis in the Red Sea are leaving the prospect of further disruptions hanging over the market, threatening to keep energy costs elevated. Satellite data reviewed by Goldman show no seaborne Iranian exports of crude or refined products in September. Before the war, Iran exported 1.7 million barrels a day.