MENA oil exports slashed by 60% amid Strait of Hormuz crisis, as UAE moves to reduce oil production

Daily oil exports from Arab Gulf countries have reduced by at least 60 percent over the past week compared to February, amid the fallout of the US-Israeli war on Iran and attacks on shipping in the Strait of Hormuz.

Leading exporters have been forced to cancel shipments, while production at oil fields has come to a halt, amid mounting security concerns in the Strait, where Iran has launched multiple attacks on merchant ships, effectively forcing the closure of the maritime passage.

In addition to attacks on Gulf ports and energy facilities, crude, condensate and refined fuels exports from eight Middle Eastern countries - Saudi Arabia, Kuwait, Iran, Iraq, Oman, Qatar, Bahrain, and the UAE - in the week to March 15 averaged 9.71 million barrels per day, data from Kpler showed, down 61 percent from 25.13 million bpd in February, according to Reuters.

Data from Vortexa shows an even more dramatic plunge, with exports from eight countries last week reaching 7.5 million bpd, down 71 percent from February's 26.1 million bpd.

Prior to the war in Iran and the crisis in the Middle East, the eight countries accounted for 36 percent or global seaborne oil exports of 70.43 million bpd, according to Kpler.

The UAE's daily oil production has fallen by more than half due to the fallout from the Iran war and the closure of the Strait of Hormuz, which forced the Abu Dhabi National Oil Company (ADNOC) to drastically reduce output.

This comes after Saudi Arabia’s oil production was also dramatically reduced in response to the ongoing crisis, halting production in several key oil fields last week.

The UAE’s Fujairah industrial zone, a critical hub for oil trading, storage, and refining, has been hit three times in four days by suspected Iranian drones, causing a fire on Monday at the export terminal.

The attacks have halted oil loading at the zone, in another disruption to the country’s energy sector, while operations in the Shah gas field have been suspended due to an earlier attack.

The Shah field, located about 180 kilometres southwest of Abu Dhabi, is one of the world's largest sour gas fields.

The Strait of Hormuz has been engulfed in a crisis and subject to numerous Iranian assaults following the outbreak of the war in late February.

Around one-fifth of the world’s oil passes through the Strait, making it a critical chokepoint for global energy supplies.

Iran has attacked at least 21 ships passing through Hormuz since the outbreak of the US and Israeli war on the country, dramatically reducing tanker traffic, which has had a domino effect on the global economy, skyrocketing gas and oil prices across the world, and raising concerns over supply shortages.

Since then, government leaders have scrambled to find a solution to tackle the serious strain the Strait of Hormuz crisis is having on global energy supplies, or ways that could allow ships to pass through.

US President Donald Trump has tried to get a number of allies on board a proposal that would see them send warships to the Strait to escort oil tankers, but this has been rebuffed by a number of European partners. 

Gulf Arab countries have been hit by almost 2,000 missile and drone attacks fired from Iran amid the US-Israeli aggression on Tehran, which initially targeted American military bases but increasingly hit civilian infrastructure, including ports, hotels, and residential buildings.

At least 15 people have been killed by such attacks, both civilians and military personnel, including a Pakistani national who died after missile debris fell on his car following a successful missile interception.