Shell CEO says Middle East oil flows reach 80% of prewar levels

Investing.com -- Middle East oil flows have recovered to about 80% of volumes seen before the conflict began, Shell Plc Chief Executive Officer Wael Sawan said Tuesday.

Speaking at the Energy Intelligence Forum in London, Sawan said the current flow levels demonstrate the ability of nations in the region to maintain their supply commitments to global markets despite ongoing tensions.

Major banks and shipping analytics firms have also indicated that flows are nearing pre-conflict levels, though precise figures remain difficult to determine. Vessels frequently switch off their satellite signals when passing through the Strait of Hormuz and parts of the Red Sea, making cargo tracking more difficult.

The Iran war has brought energy security concerns back to the forefront, Sawan said. The Group of Seven nations announced a plan last week to release up to 100 million barrels of oil from emergency reserves. Middle Eastern producers are examining new pipeline projects to create additional export routes for their oil.

Sawan warned that extended conflict could make it harder for markets to manage supply disruptions. While flows through Hormuz have increased, they have not returned to normal levels. The impact has been reduced by lower Chinese demand and increased production in other regions.

"We have maybe softened the worst impacts of the crisis, but there is only so long that you can continue to do that without further discontinuities emerging," he said.

Original Article

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