05.10.202623:27:25UTC+00Oil Holds Losses as Mideast Exports Recover

Crude oil traded near $89 per barrel on Tuesday after falling for two straight sessions, pressured by signs that Middle East exports are returning to pre-war levels. JPMorgan reported that crude shipments have rebounded to 17.5 million barrels per day, or 98% of pre-war volumes, while product flows such as diesel and gasoline have reached 3 million barrels per day, or 58%.

Gulf producers are sending larger volumes through the Strait of Hormuz despite elevated shipping risks, with Iraq seeking to charter additional vessels to move its cargoes through the waterway. Kuwait said it is currently producing at around 75% of its pre-war oil output. At the same time, Saudi Arabia has sharply cut the official selling price of its flagship crude grade for Asian buyers as supply conditions improve, further indicating a loosening market.

Investors are now awaiting the US EIA’s Short-Term Energy Outlook, due later today, for fresh insight into the US energy market.