Crude Oil Shipments Increasing From The Persian Gulf
8th July 2026
Crude oil flows through the Strait of Hormuz are rapidly rebounding as Persian Gulf exporters ramp up production with Kuwait leading the way followed by Saudi Arabia and Iraq also boosting output as shipping restrictions have become more relaxed. As the blockading of the Strait of Hormuz is easing trapped tankers have exited the Persian Gulf via the passage and loading operations have resumed at major hubs such as Saudi Arabia’s Ras Tanura terminal. Indeed, data reveals that oil output last month was the lowest from OPEC and OPEC+* since the year 2000, and also below levels during the 2020 Covid-19 pandemic when demand collapsed.
OPEC (Organisation of the Petroleum Exporting Nations) and is a coalition of 23 oil producing countries of which the full members are Algeria, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Republic of the Congo, Saudi Arabia, United Arab Emirates and Venezuela. There are a further 10 non-OPEC Partner Countries that form the OPEC+ and make up the DoC (Declaration of Cooperation) and consists of Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan. The whole group’s modus operandi is to cooperate to influence the global oil market and stabilise prices.
Yesterday, with both Saudi Arabia and Russia taking the lead, OPEC+ agreed via a video conference to add 188,000 bpd (barrels per day) to their current output target, and this is in keeping with their decision two years ago to reverse output curbs. In theory they have added 940,00 bpd (equivalent of 1% of global demand) since the war began but the closure of the Strait of Hormuz nullifies that figure, and since oil has started flowing through the Strait of Hormuz, figures released suggest it has helped to drive a surplus in Asian markets.
Over the years data shows that Asia is the biggest importer of Middle Eastern crude oil and analysts advise that Asian refineries are now well supplied to the extent that as supply ramps up from the Persian Gulf these Asian refiners are pushing some oil supplies to distant destinations such as California in the United States. Indeed, Ex UAE grades are now being offered to the West Coast of the United States and if contracts are agreed it will be the first time since 2018 that oil from the Middle East has arrived at these destinations.
In the commodities market, oil futures have fallen drastically from their peak of $126.31 during the current United States/Iran/Israel conflict to circa $72per/bl. Analysts advise that tanker tracking data shows that since the Strait of Hormuz has reopened due to the current peace accord, both the UAE and Saudi Arabia have restored shipments/exports to near pre-conflict levels. Experts advise that oil flows via the Strait of Hormuz have recovered to circa 10 million bpd but still well below the pre-war average of 18 – 19 million bpd.
The clock is ticking on the Islamabad Memorandum of Understanding; a 14 point preliminary peace agreement signed on 17th June 2026 establishing a 60 day ceasefire after 109 days of hostilities. The deal is under severe strain at the moment despite the usual positive rhetoric emanating from the White House as outbreaks of fighting and continued disagreement on the nuclear front regarding Iranian enrichment. It is hoped that the accord will soon grow into a fully signed peace agreement and the world will hold its breath as it really cannot afford another energy shock so soon after the last one.
