Persian Gulf fuel loadings recover but trail pre-war volumes
Most shipments have cleared Hormuz or are expected to pass through soon, according to Vortexa, while the recovery in refined products trails crude.
October loadings of refined products in the Persian Gulf reached about three million barrels a day, Vortexa Ltd data showed. Volumes recovered from May’s low of about one million barrels a day but were still roughly half their pre-conflict level.
The cargoes included liquefied petroleum gas, diesel and naphtha used as petrochemical feedstock. Xavier Tang, senior market analyst for Vortexa, said most had already passed through Hormuz or would do so soon. Transfers inside the Gulf and vessels disabling transponders made precise shipment volumes difficult to determine, he said.
The rebound in refined products has been slower than crude’s recovery. Fereidun Fesharaki, chairman emeritus of industry consultant FGE NexantECA, estimated Middle Eastern crude exports at about 80% to 85% of their pre-war level when pipeline exports were included. He put product exports at about 35% to 40%.
Tang attributed producers’ preference for shipping crude to the continuing vulnerability of refineries and other oil infrastructure to drone strikes.
Refined-fuel markets worldwide remain tight as some countries favour domestic consumption over exports despite attractive export profits. China’s overseas diesel shipments may remain constrained by low inventories at home.
