Gulf Oil Exports Now Surpass Prewar Levels Even as Iran Keeps Firing
Despite Iran's Attacks, Gulf Oil Exports Exceed Prewar Levels
Kpler reports that GCC states are shipping about 24 million barrels per day out of the Arabian Gulf, more than before the U.S.-Israel-Iran war began. A U.S.-protected lane on the southern side of the Strait of Hormuz moves roughly 14 million barrels per day despite constant drone and missile strikes, with a short-haul "Hormuz Shuttle Service" feeding Fujairah. Iran stays cut off by a U.S. Navy blockade, and crude still trades above $100 a barrel.
The hazard level is high, but day rates are as well, and strong earnings have attracted a growing number of tankers in the market despite regular drone and missile strikes.
- A_D_E_P_T
> "By Kpler's count, the GCC states are now moving about 24 million barrels per day out of the region, including volumes transported by overland pipeline."
Complete BS article. I guess Kpler is the propaganda mouthpiece.
The article double-counts "Hormuz Shuttle" ship-to-ship (STS) transfers and misreads pipeline capacity.
An example: If 14 mb/d is moving through the Strait of Hormuz, getting to 24 mb/d requires 10 mb/d to move via overland bypass pipelines. In reality, the only two bypass pipelines out of the Gulf have a combined physical ceiling of ~6.5 to 8.5 mb/d. (And that's when they're fully operational, which may not be the case today!)
Many more obvious mistakes in this "analysis." It's totally bunk.
- Ajedi32
Something's not adding up. Surely demand for oil is not so inflexible as to sustain such greatly increased prices at pre-war levels of supply, right? Has demand for oil increased since the start of the war for some reason? Or is there another factor beyond the Iranian blockade now driving the entirety of the reduction in supply? The Russia-Ukraine war?
- comrade1234
It went from $60,000/day for a tanker to over a $million/day for insurance, danger pay, etc.