Middle East exports of fuel oil (diesel) rose during June to their highest level in 4 months, supported by Iraq and Saudi Arabia converting part of their exports to alternative ports, at a time when traffic through the Strait of Hormuz began to gradually recover after an interim agreement between the United States and Iran
And shipping data and market information showed that the region's exports are likely to reach about 2.4 million tons, or the equivalent of 508 thousand barrels per day, during June, an increase of more than 20% compared to the previous month
And despite this rise, exports remain well below pre-war levels, when they ranged from 5.5 million to 6 million tons per month
And the improvement in shipping flows through the Strait of Hormuz contributed to an increase in the regional supply of fuel oil, which was reflected in prices in Asian markets, where the prices of high-sulfur fuel oil fell in major trading centers, led by Singapore
"Fuel oil flows through the Strait of Hormuz are expected to increase in 60 days, but a significant recovery is unlikely," said Palash Jain, Middle East oil markets adviser at FGE Nexant ECA.
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