Saudi Drives Middle East Export Rebound, But Oil Prices Remain High

Oil prices remain high despite Middle East exports hitting a seven-month high. Brent crude traded near $107 a barrel, while West Texas Intermediate (WTI) approached $94 on Tuesday.

The apparent contradiction has puzzled traders as physical supply is increasing but the market is still charging a 'supply security' premium due to ongoing disruptions in the Strait of Hormuz.

Preliminary data from Kpler shows exports from key regional producers reaching 12.8 million barrels a day in September, driven mainly by Saudi Arabia's shipments which doubled to 5.4 million barrels a day.

However, this remains below February's level of 18.8 million barrels a day, and parts of the logistics network remain vulnerable to attacks and disruption.