As the Strait of Hormuz closure nears the two-month mark (MEES, 24 April), importers worldwide are struggling to secure supplies – particularly crude and LNG. However, less attention has been paid to the near collapse in refined product exports from the Gulf due to refinery outages and blocked exports through the strait.
The situation is acute in East Africa. Prior to the US-Iran war, the region sourced around 36% of its oil products from the Gulf, according to data intelligence firm Kpler. Imports into key markets – Kenya, Tanzania and Mozambique – fell to zero in April for the first time in more than a decade (see chart 1). While product flows have been maintained – primarily from Middle Eastern ports outside the Strait such as Fujairah, Duqm and Yanbu, as well as India’s west coast – market sources suggest that the region could be dangerously close to severe shortages. (CONTINUED - 625 WORDS)
