An improvised shipping system under U.S. protection is helping tankers move oil despite attacks in the Strait of Hormuz.
Middle East oil flows, including shipments through Hormuz and alternative routes across the region, topped prewar levels in the week through Oct. 18, according to ship tracker Kpler.
In spite of this, oil prices remain high. Several factors are playing into this:
-- Traders are concerned the improvement in Hormuz might not be sustainable, particularly if fighting breaks out again.
-- The operation is also expensive, costs that ultimately flow through to consumers at the pump.
-- Thinning global inventories leave little margin for error.
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