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Persian Gulf oil exporters are scrambling to reroute their crude from ports to pipelines to keep the world running and keep their oil money flowing and fueling their economies.
Venezuela’s oil output has shot up to 1.25 million barrels daily.
The world of energy after the end of the war in the Middle East will be a very different one from what we’ve become accustomed to over the last five years.
When the United States and Israel first fired on Iran, the overwhelming assumption was that first, Iran would never close the Strait of Hormuz, and two, after the closure became a fact, that it would only last for a few days, maybe a couple of weeks tops.
Then, when it became abundantly clear that there is no expiry date on the Strait closure, oil exporters finally started making contingency plans.
News about pipeline plans in the Persian Gulf includes the UAE, which eyes an operational pipeline to the port of Fujairah by next year, demonstrating just how urgent the alternative route is to one of the largest oil exporters in the Middle East.
The UAE’s exit from OPEC highlighted the urgency as well, even though it was seen as a pivot to more energy policy independence.
It was, but it can also be interpreted as a move to make sure the oil flows.
Related: Oil Markets Stop Believing Trump’s Peace Narrative For years, the UAE has been working to boost its crude oil production capacity to 5 million barrels per day by 2027.
To that end, the UAE had consistently demanded that it should be allowed in the OPEC and OPEC+ production deals to use more of its growing spare capacity—and it has indeed been allowed to do so.
The country, alongside Saudi Arabia, is one of the few in the region—and the world—that held spare production capacity before the Middle East war began.
Saudi Arabia itself is a case in point: the kingdom has been using its East-West pipeline to bypass the Hormuz blockade, becoming an example of actual contingency planning and oil flow diversification in case of trouble in the neighborhood.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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