Gulf crude exports have recovered far more than refined-product shipments, leaving diesel costs under pressure as Brent traded near a five-month high amid shipping risks around the Strait of Hormuz.
The International Energy Agency (IEA) said Gulf crude exports reached 13.9 million barrels a day in September, more than 75% of their prewar level. Middle Eastern refined-product shipments remained below half their prewar level, according to the agency’s Oct. 14 report.
The IEA linked tight diesel markets to reduced product exports from the Middle East and Russia. It said higher diesel prices were raising the cost of goods and reducing household purchasing power. Discounted feedstocks, meanwhile, had helped U.S. refinery margins.
Reuters reported that Brent futures reached a five-month high of $111.05. At 4:10 a.m. ET (08:10 UTC), the contract stood at $110.80 a barrel, Reuters said.
Iranian First Vice President Mohammad Reza Aref told Russian Prime Minister Mikhail Mishustin in Tajikistan that Iran had “no choice” but to assert control over Hormuz for its security, state-run IRNA reported Monday.
In a Fox News interview, U.S. Energy Secretary Chris Wright estimated that Gulf oil flows had returned to about 80% of their prewar level. He said shipments of refined fuels remained constrained. Iraq’s oil minister put the country’s average daily export rate so far in October at more than 3.4 million barrels.
The U.S. Energy Information Administration (EIA) is scheduled to release its next weekly petroleum report Wednesday, Oct. 21, at 10:30 a.m. ET (14:30 UTC).
