The release of March Jodi data this week provided a clearer picture of the initial impact of the Middle East conflict on Saudi Arabia’s oil sector. The closure of the Strait of Hormuz since early March has inflicted unprecedented damage on the region’s oil producers, forcing widespread production shut-ins across the Gulf.
Saudi Arabia has been relatively shielded as its 7mn b/d East-West crude oil pipeline enabled it to switch exports from the Gulf coast to the Red Sea, allowing it to maintain around 60% of pre-conflict exports of both crude oil and refined products. Oil export revenues actually soared in March as oil price gains outweighed the lost volumes (MEES, 22 May), reaching their highest level since October 2022. (CONTINUED - 907 WORDS)
