Risk Premium Keeps Oil Prices High Despite Export Recovery

The global oil market has made significant strides in recovering from recent disruptions, but crude prices remain stubbornly high.

A Goldman Sachs analyst notes that Persian Gulf oil exports have rebounded to last year's levels, reaching 23.3 million barrels a day over the past week.

This recovery comes despite attacks on key infrastructure, including the Saudi East-West pipeline and the Houthi blockade of Saudi exports through the Bab al-Mandab strait.

The increase in shipments through the Strait of Hormuz, particularly ship-to-ship transfers, is driving the rebound. Estimated crude exports accounted for nearly 90% of the September recovery in Persian Gulf exports.