AI Summary

The oil market is experiencing a prolonged period of high prices, driven by ongoing tensions in the Middle East. This development is significant because it contradicts earlier predictions of an impending oil glut. The initial warning signs of a potential glut were based on the recovery of traffic through the Strait of Hormuz following a brief ceasefire between the US and Iran. However, this ceasefire was short-lived, and tensions have since escalated, leading to a tightening of the physical oil market.

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