Goldman Sachs sees Gulf oil output recovery by October

Oil production across Gulf states is expected to return to normal levels by October following the conclusion of the conflict linked to Iran, according to analysts at Goldman Sachs.

The US investment bank said that approximately 1.3 million barrels per day of oil and petroleum products are currently moving through the Strait of Hormuz, Caliber.Az reports, citing foreign media.

That figure is projected to rise to around 13 million barrels per day by the end of July as flows continue to normalise.

However, analysts cautioned that even after a full recovery in output, shipments through the strategic waterway are unlikely to exceed 70% of pre-conflict levels.

Producers have increasingly diversified export routes during the disruption, including pipeline links to the Red Sea port of Yanbu al Bahr in Saudi Arabia.

By Aghakazim Guliyev