Gulf Oil Exports Reach 16M Bpd
Oil exports from the Gulf via the Strait of Hormuz are gradually returning to high levels, now ranging between 15 and 16 million barrels per day, despite ongoing security risks. This recovery reflects the market's ability to adapt, as producers resort to substantial discounts, ranging from $50 to $60 per barrel, to offset transportation costs and risks. This allows nearly two-thirds of pre-war export levels to be maintained. Although maritime traffic is improving, risks remain, especially with around 400 ships still stranded and high transportation costs—particularly for refined products like gasoline and diesel—where costs can reach $50 per barrel, affecting consumer prices. The future sustainability of oil flow largely depends on the security situation in the strait; any agreement ensuring freedom of navigation could lower costs and help restore market balance.
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