New Delhi, Oct. 22 -- Crude oil supplies from the Middle East have recovered to more than 90 per cent of pre-conflict levels, but high freight rates, elevated diesel margins and rising gas prices are likely to keep energy costs under pressure, according to a report by Jefferies.

The report said crude exports from the Middle East, excluding Iran, had returned to levels above 90 per cent of those recorded before the conflict, despite continued attacks in the Gulf of Oman. The physical crude premium declined 65 per cent week-on-week to USD 9 per barrel, indicating improved supply availability.

"Overall flows (ex-Iran) are back to >90% of pre-war levels despite heightened attacks in the Gulf of Oman. Physical crude premium declined by 65% t...