Despite a recovery in crude oil flows from the Strait of Hormuz to pre-war levels, Brent prices remain elevated at $100 per barrel, signaling deep-seated market tightness.
Brent crude prices remain elevated above $100 per barrel despite the normalization of oil flows through the Strait of Hormuz. The article suggests that the market is experiencing a 'perfect storm' where the return of pre-war supply levels is insufficient to offset current market tightness, keeping prices significantly higher than the pre-war baseline of $60.
The market remains tight because the recovery of crude flows to pre-war levels is not enough to alleviate the current supply-demand imbalance.
Brent crude is currently hovering around $100 per barrel, compared to $60 per barrel before the war.
Brent crude prices remain anchored above the $100 per barrel threshold, defying expectations of a decline as tanker data shows Middle Eastern flows returning to pre-war levels. The persistent price floor highlights a structural market imbalance that outweighs the recent recovery in supply volumes from the Strait of Hormuz.
While tanker-tracking data shows flows from the Strait of Hormuz returning to pre-war levels, the market remains constrained by structural supply issues that keep prices elevated above the $100 mark.