Middle Eastern Oil Shortfall Not Enough to Push Brent Above $100

Despite the Middle East supplying less oil, Brent crude remains below $100/barrel. The Strait of Hormuz continues to flow an average of 4-5 million barrels per day, and Gulf producers are using alternative export routes. Non-OPEC producers such as the US, Canada, and Guyana are increasing their oil production, while China has large oil inventories that are reducing overall demand.

The situation is a result of increased oil production from non-traditional sources, which is offsetting the decrease in Middle Eastern supply. Reuters reported this development, highlighting the shift in global oil dynamics.