Kathmandu. Apart from Iran, there has been a significant improvement in the export of crude oil from the Middle East.

Oil exports have topped 18 million barrels a day, according to data from Kepler, which monitors maritime transport, despite attacks on ships in the Strait of Hormuz.

According to Kepler, in September, at least 16.5 million barrels of crude oil were exported daily from the Middle East, except Iran. This is a big improvement from March. In March, only about 6 million barrels of oil were released from the region on average daily.

Searching for an alternative to Hormuz

Although oil exports have increased, its route has changed. Before the war, most of the Middle East’s crude oil was exported through the Strait of Hormuz. Now about 40 percent of the oil is exported through alternative routes without using the strait, Kepler said.

Saudi Arabia and the United Arab Emirates have increased the use of their pipelines. Oil shipments through the Red Sea have also increased. This has helped reduce dependence on the Strait of Hormuz.

Saudi Arabia’s pipeline reopened

Saudi Arabia’s resumption of the East-West oil pipeline has made it easier to export oil through alternative routes. The pipeline connects the oil fields in the eastern part of the country to the port of Yanbu in the Red Sea.

The pipeline, which was briefly shut down in September due to the attack, reopened on September 22. Although initially operating at a reduced capacity, it has reduced the pressure on the Strait of Hormuz to send oil.

According to Kepler, at least 5.1 million barrels of crude oil were exported daily from Saudi Arabia in September. About 3.2 million barrels per day were exported from the United Arab Emirates and about 2.6 million barrels from Iraq.

Changing ships and sending oil

A large part of the oil going through the Strait of Hormuz is transferred from one ship to another in the middle of the sea. In this way, efforts are being made to transport the oil to the destination through safe or alternative routes.

According to Kepler, more than 70 percent of the crude oil flowing through Hormuz in August was diverted to another ship at sea.

The risk still remains

Although oil exports have increased, the situation has not fully normalized. There is still a risk of attacks on ships in the Strait of Hormuz. In recent days, there have been reports of several incidents of attacks on ships in the region.

Iran claims control over the strait. Although ships using the route without permission could be at risk, the movement of oil has increased due to alternative routes and changing ships at sea.

Impact on oil prices

Oil prices have come under some pressure in international markets due to increased oil supplies from the Middle East. Brent crude oil fell 0.79 percent to $101.44 a barrel on Monday. U.S. crude oil also fell 1.20 percent to $90.02 a barrel.

But experts say that the situation in the region cannot be considered normal due to the increase in supply. Even though alternative routes of transportation of oil have come into operation, safety risks and rising transportation costs still remain challenges.