Gulf nations have found ways to keep oil flowing

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on ABC News or enjoy below:

🗞️ Driving the news: Nearly seven months after Iran disrupted shipping through the Strait of Hormuz, Gulf producers have restored much of the lost oil flow through alternative pipelines, escorted shipping routes and complex ship-to-ship transfers
• These workarounds, alongside lower demand and oil-stock drawdowns, have helped keep crude around $100 a barrel rather than triggering the much larger price shock initially feared.

🔭 The context: Saudi Arabia redirected exports through its East-West pipeline and Red Sea routes, while the UAE used a pipeline to Fujairah
• Attacks have repeatedly forced new adjustments, including longer routes through Egypt and around Africa
• Analysts estimate roughly 8 million barrels per day of the prewar 15 million barrels/day flow has been restored, while inventories and weaker demand have helped close the remaining gap

🌍 Why it matters for the planet: The disruption highlights the vulnerability and carbon intensity of global oil supply chains, with longer voyages and additional tanker activity increasing transport costs and potentially emissions
• Continued reliance on oil infrastructure also underscores the geopolitical and physical risks surrounding fossil-fuel dependence

⏭️ What’s next: Further attacks on pipelines, shipping corridors or transfer points could make the current workarounds even more expensive and time-consuming
• The market therefore remains sensitive to developments around Hormuz, while the eventual reopening of the strait could significantly change oil prices and shipping patterns

💬 One quote: “Our take is that the market is very tightly balanced,” said Rahul Choudhary of Rystad Energy.

📈 One stat: $1 million/day: the spot charter rate for tankers transiting Hormuz reached this level on September 11, compared with a typical $30,000–$50,000/day

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