Middle East Oil Flows Rise to Near Pre-War Levels

Oil prices steadied after their biggest drop in over a week as Middle East supply rose to near pre-war levels. Saudi Arabia has resumed flows through its East-West pipeline, which can handle up to 7 million barrels per day. Analysts at JPMorgan estimate that the region's crude exports have rebounded to 17.5 million barrels per day, or 98% of pre-war levels.

The US is also expected to tap more oil from emergency reserves, offering further supply relief. The release of up to 40 million barrels will be the last of the nation's 172 million-barrel contribution to a coordinated drawdown of global reserves since the war began.

However, geopolitical volatility and constrained logistics are expected to keep prices elevated. Key OPEC+ members are likely to stick with their plan to hold crude production quotas steady for next month when they meet this weekend.