No. of Recommendations: 8
Except they're not. I assume you've not read the headline of the thread or looked at any of the data. I'll repeat it: Oil flows in the month of September were about what they were in 2025 when one considers the Saudi pipeline *and* when you zero out Iran's contributions.
That doesn't contradict my statement. That they are allowing some flow now doesn't mean that didn't, or can't, shut off flow in the past or future. As banksy just posted, the US military is escorting ships, plus some ships are sneaking through ("dark transits"). Military escorts are very expensive. That's not sustainable.
But, technically, I guess we can do something. Escorts. Just not practical in the long-term.
JP Morgan says they don't have a forward view because of the chaos, and that refined products flowing out are about half what they were.
Meanwhile, satellite imagery from Sunday showed all seven berths open at two key ports in Yanbu and Al Muajjiz on Saudi Arabia’s West Coast, signaling that the East-West pipeline has ramped back up, according to Kpler.
So, can these volumes be sustained?
“Higher crossings should not be mistaken for improved safety – rather, they reflect the industry’s increasing ability to operate under sustained risk,” Kaneva said Tuesday.
For example, she noted that insurance costs remain astronomically high. Insurers are currently valuing the largest class of 5- to 10-year-old oil tankers at $150 million, even though it costs $135 million to build a new one.
