Oil prices remain high even as crude supply recovers, and analysts say the reason is logistics, not a shortage of oil. Reuters’ Open Interest column lays out why moving fuel has become the real bottleneck.

The trouble began when Iran blocked the Strait of Hormuz after the war with the US and Israel started in February. Saudi Arabia rerouted exports through its East-West pipeline to the Red Sea port of Yanbu. At one point, 4 per cent of global supply moved through that pipeline.

Then the pipeline itself was attacked in early September by Iranian-backed militias in Iraq. Saudi Arabia shifted exports back to the Gulf through Hormuz, which proved easier to transit than expected. Saudi shipments through Hormuz hit 3 million barrels a day in September.

The deeper problem is refining. Ukrainian strikes on Russian refineries have squeezed diesel supplies, and moving refined fuel takes time. That is why the IEA and G7 are releasing emergency stocks and coordinating refinery schedules. Until logistics normalise, consumers face high energy bills.