Middle East Fuel Oil Exports Set to Hit Four-Month High
Middle East fuel oil exports are expected to rebound to a four-month high in June, driven by increased shipments from Iraq, Saudi Arabia, and Oman via ports outside the Persian Gulf.
Middle East fuel oil exports are set to hit a four-month high in June, rebounding from a dip in May as tanker traffic through the Strait of Hormuz picks up and key producers boost shipments from alternative ports.
According to ship-tracking data, Middle Eastern fuel oil exports are expected to jump by 20% from May to about 508,000 barrels per day (bpd) in June. Saudi Arabia has increased fuel oil shipments from the Yanbu port on the Red Sea, while Iraq has started exporting fuel oil from Syria's Baniyas port for the first time since March, with Iraqi fuel oil exports from that port reaching a record high of over 600,000 barrels. Oman has also moved to increase shipments from ports outside the Persian Gulf. These shifts reflect efforts by producers to bypass potential bottlenecks in the Strait of Hormuz and maintain supply flows.
For fuel oil traders and refiners, the rebound in Middle East exports adds to global supply availability, potentially weighing on fuel oil prices and narrowing crack spreads. The increase comes as summer demand for power generation in the Middle East and Asia typically rises, which could absorb some of the additional barrels. Live fuel oil prices and shipping data on NowPrice show how the market is reacting to these supply dynamics.
Looking ahead, market participants will monitor whether the higher export volumes persist through the third quarter, especially as OPEC+ production quotas and geopolitical tensions in the region remain key variables. The ability of Iraq and Saudi Arabia to sustain shipments from non-Gulf ports will be a critical factor in determining global fuel oil balances.