Saudi oil exports near pre-war levels as Hormuz shipments surge

Saudi Arabia is shipping crude oil through the Strait of Hormuz at its highest rate since the waterway reopened under the interim U.S.-Iran peace deal, with flows approaching pre-war levels in what marks the clearest sign yet that Persian Gulf energy trade is normalizing after months of disruption.

Exports Near Pre-War Levels

Saudi Arabia shipped approximately 6.3 million barrels per day in the six days through Wednesday, according to tanker-tracking data reported by Bloomberg Saudi Arabian Oil Company, putting flows at nearly 90% of February levels — the month before the Iran war began. Four supertankers operated by Bahri, the Saudi national shipping company, carrying an estimated 8 million barrels of crude, have exited the Persian Gulf in recent days.roic+1

The surge comes roughly two weeks after the U.S. and Iran signed an interim memorandum of understanding in Switzerland on June 18 that committed Iran to reopening the strait and the U.S. to lifting its naval blockade. The deal extended the ceasefire for 60 days while the two sides negotiate a permanent resolution.npr+1

Spot Sales Signal Strategy Shift

Saudi Aramco has been actively offering additional volumes on the spot market to Asian refiners, a departure from its standard reliance on long-term contracts, according to people familiar with the matter. The move comes as Aramco had already cut its official selling price for Arab Light crude to Asia by $6 per barrel for July, setting a premium of $9.50 above the Dubai/Oman benchmark — the largest reduction since 2022.inspenet+2

The spot sales target refiners in China, Japan, and South Korea, though Saudi exports to China had fallen to record lows before the strait reopened, with just 12 million barrels allocated for July loading.inspenet

Oil Prices Slide on Supply Recovery

The recovery of Gulf flows has weighed heavily on crude prices. Oil fell toward four-month lows this week, with Brent crude trading near $72 per barrel on Tuesday and West Texas Intermediate briefly dipping below $70 in late June for the first time since before the war.fortune+2

U.S. and Iranian negotiators concluded a round of indirect talks in Doha on Wednesday focused on maritime traffic through the strait and unfreezing Iranian assets, though sources said no breakthrough on a lasting peace was achieved. The technical discussions underscore remaining uncertainty even as tanker traffic accelerates. As BIMCO chief security officer Jakob Larsen cautioned after the deal was signed, "significant safety and security risks still persist" in the waterway.yahoo+1