UAE oil exports rebound to 85% of pre-war levels as Gulf supply routes adapt: IEA

Oil exports from the United Arab Emirates recovered to nearly 85% of their pre-war levels in early June, as the country leveraged alternative export routes, storage facilities and shipping strategies to navigate disruptions caused by tensions in the Gulf, Bloomberg reported, citing a report from the International Energy Agency (IEA).

According to the report, UAE oil exports rose to about 4.3 million barrels per day in early June, up from roughly 1.9 million barrels per day in March, shortly after the conflict involving Iran escalated.

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The recovery was aided by the UAE’s pipeline network that bypasses the Strait of Hormuz and connects oil fields to the port of Fujairah. The country also drew on its 42-million-barrel underground storage facility at Mandous near Fujairah to maintain export flows, Bloomberg reported.

The IEA said the UAE additionally increased shipments through the Strait of Hormuz, with some tankers reportedly switching off their transponders during parts of their voyages.

Bloomberg reported that Abu Dhabi National Oil Co. (Adnoc) continued moving crude and gas cargoes through the Gulf during the conflict, often using smaller vessels to transport supplies beyond the Strait of Hormuz. The measures helped sustain exports at a time when concerns over supply disruptions had raised fears of a sharp spike in oil prices.

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The report noted that global oil prices have since eased back toward pre-war levels following an interim peace agreement between the United States and Iran and the subsequent improvement in shipping flows through the Strait of Hormuz.

Despite the resumption of more normal traffic, Bloomberg reported that some vessels continue to limit the use of transponders during portions of their transit through the strategic waterway.