Large Oil Producers Around the Persian Gulf Ramp Up Exports
As fighting between Israel and Iran intensifies, the major oil producers around the Persian Gulf, including Saudi Arabia, have been racing to load tankers with exports, possibly as a hedge against future disruption.
These increases are occurring despite jumps in insurance costs and shipping rates and hazards like jamming of navigation systems.
Analysts say that these producers are preparing for the possibility that fighting could spread to oil export installations, which have been largely spared so far, or that shipping could be disrupted through the Strait of Hormuz, the narrow passageway from the Persian Gulf through which a large portion of both oil and liquefied natural gas travel.
'They want to make sure that they reduce the risks,' said Homayoun Falakshahi, head of crude oil analysis at Kpler, a research firm. 'That means export as much as possible, as soon as possible.'
Kpler estimated that Saudi Arabia's oil exports had increased 16 percent through mid-June from the same period in May.
Other producers in the region like the United Arab Emirates and Iraq have boosted shipments around 10 percent, Mr. Falakshahi said.
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