Reported by Al Jazeera
Brent crude prices are up more than 60 percent compared with pre-war levels, despite rebound in supply.
Oil flows out of the Gulf have increased substantially, easing the huge supply disruption caused by the United States/Israel war on Iran.
Crude exports from the Gulf averaged 24.6 million barrels per day (bpd) in the week to October 18, exceeding the pre-war average, according to market intelligence firm Kpler.
More from the original report
Brent crude, the global benchmark, is trading at its highest prices since April, up more than 60 percent compared with before the war.
On Friday, Brent crude front-month futures – contracts for oil deliveries in December – rose more than 2 percent to briefly top $117 a barrel.
The climbing prices reflect anxiety about the possibility of renewed hostilities in the US war on Iran, dwindling oil stocks , and the increased costs of transporting supplies out of the region, according to market analysts.
“The market is doing exactly what it is supposed to do: It is telling us there is plenty of prompt oil, but there is no end to this war in sight – in fact … escalation is very likely,” Adi Imsirovic, a lecturer in energy systems at the University of Oxford, told Al Jazeera.
“Therefore, futures markets reflect that expectation,” Imsirovic, a veteran oil trader, said.
Oil producers have become increasingly adept at responding to the volatile climate in the Middle East to keep supplies flowing.
Facing the threat of Iranian attacks on shipping in the Strait of Hormuz, shipping lines have established a shuttle system involving ship-to-ship transfers off Oman and the United Arab Emirates to reduce the distance any one vessel must travel in perilous waters.
Shuttle boats carry the oil through the strait and load it onto waiting tankers once they are out of the danger zone.
In August, more than 70 percent of the crude that crossed the strait did so via ship-to-ship transfers, according to Kpler.
Oil producers have also ramped up exports that bypass the strait altogether via Saudi Arabia’s East-West pipeline , which carries oil supplies from its eastern oil fields to…