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

Shell's Executive Chairman Wael Sawan reported on Tuesday that Middle East oil flows have reached approximately 80% of their pre-war levels. Speaking at the Energy Intelligence Forum in London, Sawan highlighted the region's capacity to meet global supply commitments despite ongoing tensions. Major banks and shipping firms have echoed this assessment, though pinpointing exact figures remains challenging due to vessels often disabling satellite signals in the Strait of Hormuz and parts of the Red Sea, which complicates cargo tracking.

The ongoing Iran conflict has reignited concerns about energy security, according to Sawan. The Group of Seven nations recently announced plans to release up to 100 million barrels of oil from emergency reserves. Middle Eastern producers are also exploring new pipeline projects to provide additional export routes for their oil. However, Sawan cautioned that prolonged conflict could hinder markets' ability to manage supply disruptions effectively.

Although current flows through the Strait of Hormuz have risen, they have not returned to pre-conflict levels. This improvement has been tempered by reduced Chinese demand and increased production in other regions. Sawan emphasized that while the worst impacts of the crisis have been mitigated, markets cannot sustain this level without encountering further disruptions.