Why isn't oil above $100 despite supply disruptions?

The article explores the discrepancy between the rise in global oil tensions and the inability of oil prices to reach $100 per barrel. Despite the escalation of the U.S.-Iran conflict disrupting oil shipments from the Strait of Hormuz and the Red Sea, Brent crude oil prices remain below $100 per barrel. Analysts attribute this to the reduced volume of oil shipments, with Middle East producers now exporting around 11 million barrels per day, down from 18 million bpd before the conflict began seven months ago.

Additionally, the alternative shipping routes, Saudi Aramco's resumed operations in Ras Tanura, and Iraq's increased production have helped mitigate some of the supply disruptions. However, Iran's oil exports have plummeted due to the U.S. blockade, and demand destruction in petrochemicals and transportation fuels continues to be a significant factor in keeping oil prices lower than expected.

Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.