US Energy Secretary Reports Strait of Hormuz Oil Flows Rebound to 14 Million Barrels Per Day

Up to 14 million barrels of oil a day are currently transiting the Strait of Hormuz, with Gulf crude flows rebounding to between 80 and 90 per cent of their prewar levels, according to US Energy Secretary Chris Wright. Speaking remotely on Monday at the 25th WPC Energy Congress in Riyadh, Mr Wright also noted that supplementary supplies from the Gulf are being moved via pipelines that bypass Hormuz.

"The crude problem we talked a lot about – it's still there but it's mostly handled," Mr Wright stated, presenting an outlook more optimistic than current ship-tracking metrics indicate. Data compiled by analytics firm Kpler indicates that oil exports through Hormuz averaged slightly under nine million bpd during September, marking the highest monthly volume since the conflict began, yet representing roughly 44 per cent of the 20.6 million bpd registered in February.

Kpler reported that approximately 22 vessels navigated the strait daily over the 30-day period leading up to October 12, with tankers comprising about two thirds of those crossings. This provisional data is subject to updates based on movements tracked up to 2pm UAE time on October 12. Laden crude tankers departing the Gulf transported approximately 8.9 million bpd over the past month, predominantly originating from Saudi Arabia and Iraq. These figures do not align directly with the broader recovery estimates provided by Mr Wright, which account for volumes routed through bypass pipelines, and Kpler's September metrics continue to point toward lower volumes through Hormuz than those indicated by the US official.

Mr Wright delivered these remarks in the wake of a Saturday attack on Riyadh airport that resulted in 13 fatalities and approximately 300 injuries, highlighting the persistent security threats confronting the globe's primary oil-exporting territory. "I want to start out by strongly condemning the cowardly attacks by the Houthis on the people of Saudi Arabia, on civilian infrastructure," Mr Wright remarked during his address at the energy congress. He reasserted Washington's dedication to the kingdom as industry leaders and energy ministers converged in Riyadh despite escalating security apprehensions. "We are here as your partners," he added, reinforcing the US's "unwavering support for Saudi Arabia".

Despite the rebound in crude shipments, Mr Wright cautioned that fuel markets remain under pressure, noting that diesel, jet fuel, and petrol prices stay elevated. "The challenge is still here and the challenge is still ahead of us," he concluded.