Oil exports are rising again, but global prices remain high due to war risks, shipping costs, and low inventory levels.
Oil exports from the Gulf region recently hit 24.6 million barrels per day. This amount exceeds pre-war levels. Supply disruptions from the conflict between the United States and Iran have eased.
However, global oil prices continue to climb. Brent crude recently reached its highest price since April. Prices are now 60 percent higher than they were before the war.
Market analysts point to several causes for this trend. Investors fear new fighting in the region. They also worry about low oil stocks and high shipping costs.
Meanwhile, oil companies use new methods to keep supplies moving. Shipping lines now use a shuttle system to avoid dangerous waters. This method moves oil between ships near Oman and the UAE.
Also, producers move more oil through pipelines that bypass the Strait of Hormuz. These pipelines connect oil fields directly to the Red Sea. Nearly 40 percent of Gulf exports now use these routes.
These complex logistics create major expenses for the industry. Freight costs have jumped to 10 times their normal rate. Higher insurance premiums also drive these prices up significantly.
After that, analysts noted that October was the deadliest month for commercial ships. Thirty-two incidents occurred on the water as of Friday. These events make energy delivery unreliable and very costly.
Still, some experts doubt that production has truly returned to normal. Data from the International Energy Agency shows output remains below pre-war levels. Global stockpiles have also dropped by 10 million barrels recently.
Finally, experts see no immediate end to these high prices. Markets expect volatility to last for years. A return to normal costs requires a permanent end to the war.