Global oil benchmark Brent crude has rallied this month but stayed below $100 a barrel despite recent escalation in the US-Iran conflict that has disrupted Gulf exports from the Strait of Hormuz and the Red Sea.
Crude oil shipments from Middle East producers are at about 11 million barrels per day (bpd) now, from 18m bpd before the US-Israeli war on Iran began seven months ago, according to Argus.
Here are some of the factors driving oil prices:
Significant volumes have been able to flow through Hormuz
In the week before fighting erupted again on August 30, roughly 8m to 9m bpd had been flowing through Hormuz, double the previous week’s volume, said Rystad Energy’s Chief Economist Claudio Galimberti.
