Middle East Fuel Oil Exports Seen Hitting Four-Month High in June, Still Below Prewar Levels

Middle East fuel oil exports are expected to rebound in June to their highest level in four months, though they remain well below prewar norms. According to Jin10, trade sources and shipping data said the rise was driven by Iraq and Saudi Arabia shifting crude supplies to other ports, while cargo movements through the Strait of Hormuz were expected to resume. Kpler and LSEG data showed June exports were expected to reach about 2.4 million metric tons, or 508,000 barrels per day, up more than 20% from May. However, the level was still far below the prewar monthly average of 5.5 million to 6.0 million metric tons. Palash Jain, a Middle East oil consultant at FGE NexantECA, said flows of fuel oil through the Strait of Hormuz were expected to increase over the next 60 days, but the scale of the recovery was unlikely to be significant.