Oil prices were caught between fears of a war between the US and Iran and the prospect of a deal.
The recent 25% drop in Brent crude over 10 days does not mean traders are betting that the US-Iran conflict is over, Bloomberg reported.
The market seems caught between two opposing scenarios: a renewed escalation that could push oil higher, or a deal that could lower it significantly. At around $92 a barrel, Brent reflects neither outcome, the publication argued.
Despite ongoing geopolitical risks:.
Crude oil exports from the Middle East have recovered to more than 90% of pre-war levels, using both the Strait of Hormuz and alternative routes.
Physical oil prices are falling below benchmark futures, with Canadian crude now trading below $60 a barrel.
For the first time since the war began, global inventories are not shrinking every week.
Exports of refined products from the Persian Gulf climbed to about 60% of pre-war levels.
Other factors keep fuel prices high:
Disruption in shipping in the Gulf has caused supertanker charter rates for lines to China to soar to $1.4 million a day.
Ukraine attacks on Russian refineries account for about a third of the recent rise in diesel prices.
The US-Iran deal could put further downward pressure on prices by reopening Iranian exports, which previously exceeded 2.5 million barrels per day of crude and refined products.
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