The Recovery of Middle Eastern Oil Accelerates as Qatar Resumes Crude Sales to Asia

SadaNews - Qatar has joined the Gulf Arab states in revitalizing crude oil sales, with regional producers ramping up activities following the temporary peace agreement between the United States and Iran.

A shipment of Qatari Shah Deniz crude was sold this week to Taiwan's Formosa Petrochemical, which requested supplies for the period from August to September, according to informed traders. Quantities of the same crude, along with Qatari offshore and onshore crudes, were sold to an Indian refinery last week, according to traders who requested anonymity to speak publicly.

These transactions are the first documented dealings for Qatari crude with Asian refineries since the outbreak of the war, although Doha has been more active in resuming production and export of liquefied natural gas.

Futures prices for oil have sharply declined this month, as Brent crude wiped out all gains made during the war, with the reopening of the Strait of Hormuz allowing for the resumption of sales and shipping movements. The improvement in maritime activity has contributed to the recovery of crude exports from the United Arab Emirates, alongside a similar rebound in Iraq and Kuwait.

Qatar has recently succeeded in bringing liquefied natural gas carriers into and out of the Arabian Gulf via the strait, and it plans to quickly increase production of supercooled fuel once the waterway is fully reopened, restoring most of its export capacity within two months, according to informed sources.

The movement of tankers near Qatar's Ras Laffan facility has also increased, with vessel tracking data showing that the giant oil tanker Kiku, owned by a Greek company, is currently loading two million barrels of Qatari crude from the Shah Deniz floating storage and offloading terminal.

Return of Crude Carriers to the Arabian Gulf

The Kiku tanker appeared in the Arabian Gulf on June 19, after its last transmission from the Gulf of Oman on June 13, becoming one of the first major oil tankers to enter the Gulf since the US-Iran agreement.

In a separate context, Qatar Energy, the state-owned company, has announced a gasoline shipment for export next month from its refinery in Mesaieed in the Arabian Gulf, indicating a widening pace of refining operations.

Qatar Energy, responsible for the country's energy supplies including oil, products, and liquefied natural gas, did not immediately respond to a request for comment. Apex Shipping & Energy, the Greek company listed as the manager of the Kiku tanker in the Equasis database, also did not respond to emails requesting comment.