Middle East Oil Exports Exceed Prewar Levels as Producers Bypass Regional Disruption

Middle East oil exports have rebounded above prewar volumes, pulling the Oman crude premium over Dubai down to $4.22 per barrel, its lowest since late July. Producers bypassed maritime conflict zones using ship-to-ship transfers, shuttle-shipping, and Saudi Arabia's Yanbu Red Sea terminal, lifting Persian Gulf shipments to 24.6 million barrels per day in the week ending October 18 against a 23.3 million bpd prewar baseline. However, Strait of Hormuz transits remain down by more than one-third, tanker freight rates touched record highs, and Brent crude gained 2.1% to $111.03 per barrel.