Key Takeaways
- Crude and condensate exports from Gulf countries remained stable at about 10.7 million barrels per day in July.
- Exports reached between 12 to 13 million bpd initially but slowed as fighting intensified.
- Kuwait increased production, while Saudi Arabia and the UAE saw declines.
Gulf countries' crude oil and condensate exports were largely steady in July, according to shipping data. Exports averaged around 10.7 million barrels per day (bpd), remaining about 40% below pre-war levels.
The relatively stable export levels have helped ease concerns about a sharper supply disruption and offset a drawdown in global oil inventories.
However, tanker traffic through key Middle Eastern waterways such as the Strait of Hormuz and Bab el-Mandeb remained well below pre-war levels. Fighting between Iran and the United States intensified again in July, leading to a slowdown in exports.
Crude and condensate exports from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait, and Iran rose just 2% from June to average 10.7 million bpd in July, according to Kpler data.
Exits reached between 12 million and 13 million bpd initially but slowed as fighting resumed. Iraq doubled its exports from June, driving the increase alongside higher flows from Kuwait and Iran, while shipments from Saudi Arabia and the UAE declined.
Nine additional very large crude carrier loadings boosted Iraqi exports in July, although flows through Hormuz have slowed due to escalating conflict, Vortexa analyst George Morris said.
At least 14 vessels reported attacks in the region to the International Maritime Organization in July, up from eight in June. Higher exports have enabled some producers to raise output.
Kuwait raised crude production to 1.971 million bpd in July from about 1.65 million in June, a person familiar with the matter told Reuters.
Still, Saudi Aramco CEO Amin Nasser said on Tuesday that the world had lost more than 2.6 billion barrels of oil since the war began and rebuilding inventories would take about 18 months at a rate of 2.1 million bpd, even if Hormuz reopened immediately.
Red sea exports have also slowed as Yemen’s Iran-backed Houthis stepped up attacks near the Bab el-Mandeb strait. Saudi crude exports from Yanbu fell to 3 million bpd after July 20 from 3.8 million in April-June, according to Energy Aspects.
