Oil market returns to surplus as Gulf exports recover

The global oil market is returning to surplus, helped by the resumption of exports from countries around the Persian Gulf. Oil and fuel production in Russia also increased in October, aided by an agreement with the administration of US President Donald Trump. The International Energy Agency (IEA) said this today in its regular monthly report on the oil market.

Oil exports from the Persian Gulf region were disrupted by the conflict in the Middle East. It escalated in late February, when the United States and Israel launched airstrikes on Iran. The fighting then disrupted shipping through the Strait of Hormuz, which is a key route for oil and liquefied natural gas (LNG) exports from the region.

Oil production in Russia rose by 210,000 barrels per day in October from September, to 8.73 million barrels per day. The agency said Russian exports of oil products rose by 260,000 barrels per day in October from September, to 1.49 million barrels per day, the highest level since June. Gasoil deliveries doubled to 270,000 barrels per day.