Gulf Oil Exports Rebound Above 10 Million BPD in June

Oil exports from the Gulf region recorded a sharp recovery in June, rising by more than 3 million barrels per day (bpd) compared with May. Combined crude and condensate exports from Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Iraq and Iran exceeded 10 million bpd as shipping through the Strait of Hormuz returned to normal following U.S. military support that helped keep the vital waterway open.

According to cargo tracking data from Kpler, total exports from the five Gulf producers reached 10.07 million bpd in June, an increase of more than 3.5 million bpd from May. However, exports remained around 40% lower than the levels recorded before the conflict.

UAE Leads Export Recovery

The UAE played the biggest role in the recovery by allowing millions of barrels of crude oil that had been delayed in the Gulf to reach global markets. The increase in exports enabled producers to raise supply and helped bring oil prices back to the levels seen before the conflict.

Data from Kpler, Vortexa and LSEG showed that UAE crude exports reached a record 3.7 million to 3.8 million bpd during June. This represented an increase of more than 1 million bpd compared with May.

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Vortexa Reports Higher June Shipments

Another cargo analytics company, Vortexa, estimated Gulf crude and condensate exports at approximately 10.2 million bpd in June, compared with about 7 million bpd in May. Despite the significant improvement, exports remained well below the 16.5 million bpd recorded during the same period last year.

Strait of Hormuz Shipping Returns to Normal

Following the June 17 agreement between the United States and Iran to halt the conflict and restore shipping through the Strait of Hormuz, the backlog of crude waiting in the Gulf began clearing at a faster pace.

Kpler analyst Johannes Rauball said around 23 million barrels of crude were still waiting to pass through the Strait of Hormuz after the backlog eased. He also noted that floating storage in the waterway had peaked at 96 million barrels in late April.

Tanker Traffic Shows Growing Confidence

Shipping activity through the Strait of Hormuz also increased significantly during the second half of June.

According to ship broker BRS, 98 oil tankers crossed the strait between June 22 and June 28, averaging about 14 vessels each day. This was the highest weekly traffic since the conflict began. The movement included 47 fully loaded outbound tankers and 41 ballast vessels entering the Gulf, indicating that ship owners were becoming more confident about sending vessels into the region.

Saudi Arabia Increases Oil Exports

Saudi Arabia also raised crude exports during June. Kpler data showed Saudi shipments increased by 768,000 bpd to reach 4.52 million bpd.

During the final week of June, Saudi exports averaged about 6.3 million bpd, nearly matching the country's January export levels. The increase was supported by higher crude loadings from Ras Tanura.

Alternative Export Routes Helped Maintain Supplies

During the conflict, Saudi Arabia and the UAE were able to redirect part of their oil exports through pipeline networks that bypass the Strait of Hormuz. Iraq and Kuwait had limited options to use similar alternative routes.

The Abu Dhabi National Oil Company (ADNOC) also operated a tanker shuttle service to help maintain export flows while shipping through the Strait of Hormuz faced disruptions.