The Wall Street Journal reported that oil exports from the Persian Gulf have gone beyond pre-war levels, and that the shipping mechanism under U.S. protection has allowed tankers to transport oil from the region despite Islamic Republic attacks in the Strait of Hormuz.
Based on data from Kpler, Middle East oil flows in the week ending October 18 rose to more than 24 million barrels per day; before the war, it was 23.3 million barrels per day. Oil flows from Hormuz also reached about 14 million barrels per day, equivalent to 82% of the pre-war level.
The newspaper wrote that in September, about 40% of non-Iranian crude oil from the Persian Gulf was exported via routes other than Hormuz, while the figure before the war was 17%.
Despite about 30 recorded attacks on ships in October, high profits from transporting oil have kept tanker traffic going. At the same time, the freight cost for shipping Persian Gulf oil to China by supertanker has reached about $37.37 per barrel, and war-risk insurance costs have risen to up to 10% of the ship’s value.
Traders have warned that the resumption of fighting could disrupt oil flows again.
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