Middle East oil flows have climbed back to about 80% of prewar levels, Shell CEO Wael Sawan said, even as tracking gaps keep the real picture uncertain. The comments come as the G7 moves to tap emergency reserves and regional producers look for new export routes.
Shell Chief Executive Officer Wael Sawan said Middle East oil flows have recovered to about 80% of volumes seen before the conflict began, speaking Tuesday at the Energy Intelligence Forum in London. He said the current flow levels show regional producers can still meet their supply commitments to global markets despite ongoing tensions.
Major banks and shipping analytics firms have also pointed to flows nearing pre-conflict levels, though precise figures remain hard to pin down. Vessels frequently switch off their satellite signals when passing through the Strait of Hormuz and parts of the Red Sea, which makes cargo tracking more difficult.
The Iran war has pushed energy security concerns back to the forefront. The Group of Seven nations announced a plan last week to release up to 100 million barrels of oil from emergency reserves, and Middle Eastern producers are examining new pipeline projects to open additional export routes for their oil.
Sawan warned that an extended conflict could make it harder for markets to manage supply disruptions. Flows through Hormuz have increased, but they have not returned to normal levels. Lower Chinese demand and higher production in other regions have softened the impact so far.
He added that the industry has maybe softened the worst effects of the crisis, and that this relief cannot last indefinitely without further disruptions emerging.
Source: Investing.com
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