Middle East Fuel Oil Exports to Hit Four-Month High in June

Key Facts

1Middle Eastern fuel oil exports are set to rebound to a four-month high in June as Iraq and Saudi Arabia diverted supply to other ports and shipments through the Strait of Hormuz pick up.

In a sign of improving regional supply flows, Middle East fuel oil exports are set to rise to a four-month high in June, according to Reuters. The rebound is driven by Iraq and Saudi Arabia diverting supply to alternative ports, along with a recovery in shipments through the Strait of Hormuz after previous disruptions.

Although export levels remain below the pre-war peak, the gradual restoration of traffic through the Strait of Hormuz — which carries roughly 20% of global oil supplies — is boosting supply expectations. This trend is weighing on fuel oil prices globally, especially in Asian markets that rely heavily on imports from the region.

Traders are monitoring the impact of this supply increase on fuel oil refining margins in the third quarter, while awaiting upcoming shipping data from Gulf ports. Attention also remains on geopolitical tensions in the region that could disrupt the recovery path.