Crude oil extends losses as Middle East exports recover to near pre-war levels

Crude oil prices hovered near $89 per barrel on Tuesday, extending losses for the second straight session. The decline came as Middle East crude exports showed signs of recovery, nearing 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 like diesel and gasoline reached 3 million barrels per day, or 58%.

Gulf producers are increasing shipments through the Strait of Hormuz despite ongoing risks. Iraq is looking to hire more vessels to transport its cargoes, and Kuwait is pumping oil at around 75% of its pre-war capacity. Saudi Arabia also cut the price of its flagship crude grade for Asian buyers, signaling a loosening market.

Investors are now awaiting the US Energy Information Administration’s Short-Term Energy Outlook, due later in the day, for further insights into the US energy market.