Middle East oil flows reach 80% of pre-war levels, Shell CEO Sawan says

Oil flows from the Middle East have rebounded to ~80% of pre-war volumes, a testament to the resilience of countries in the region to maintain their supply commitments to global markets, Shell (SHEL) CEO Wael Sawan said Tuesday, according to Bloomberg.

While several banks and shipping analytics firms have also suggested flows are approaching pre-conflict levels, Sawan's comments provide one of the most authoritative assessments yet of how the region's exports are recovering.

"There's a recognition once again that you cannot have national security without energy security," the CEO said at the Energy Intelligence Forum in London. "You cannot have an industrial or an economic strategy that is not underpinned with a solid energy strategy."

But Sawan also warned that the longer the war continues, the harder it will be for markets to continue managing supply disruptions; while flows have rebounded, they have not returned to normal, and the crunch would have been worse without reduced Chinese demand and increased production elsewhere.

"We have maybe softened the worst impacts of the crisis, but there is only so long that you can continue to do that without further discontinuities emerging," the CEO said.

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