Iran Rushes Oil Exports Amid Strike Fears as Saudi Arabia Ramps Up Output
Key Facts
- •Iran loaded nearly 20.1 million barrels of oil between February 15 and 20, equivalent to three times its normal rate.
- •Saudi Arabia is increasing oil production and exports as part of a contingency plan in case of disruptions to Iranian supplies.
- •Chartering costs for Very Large Crude Carriers (VLCCs) have more than tripled to over $170,000 per day.
Iran is aggressively front-loading its crude oil exports from the Kharg Island terminal to mitigate the potential impact of anticipated US military strikes. According to data from Bloomberg and Kpler, Iran loaded approximately 20.1 million barrels between February 15 and 20, representing three times its normal export rate. In response to the escalating tensions, Saudi Arabia is reportedly increasing its oil production and exports as part of a contingency plan to cover potential global supply gaps. The geopolitical friction has caused chartering costs for Very Large Crude Carriers (VLCC) to triple, reaching over $170,000 per day. This rush to move crude to overseas storage reflects deep concerns over possible blockades or direct damage to Iranian energy infrastructure. Consequently, the heightened risk of conflict is driving a significant risk premium across global energy and shipping markets.
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