(Oil & Gas 360) – Global oil prices remain vulnerable to further increases despite recovering crude exports from the Persian Gulf, as elevated tanker costs and transportation disruptions continue to constrain the delivery of petroleum to international markets, according to a new assessment from Citigroup.The bank said Thursday that improvements in regional export volumes have not been accompanied by comparable improvements in shipping efficiency, leaving refiners and petroleum buyers exposed to unusually high transportation expenses.Gulf crude exports, excluding Iran, recovered to more than 81% of prewar levels in September, according to data cited by Citi. Saudi Arabia led the recovery despite continued threats to energy infrastructure and commercial shipping.However, moving those supplies has become considerably more expensive.Freight rates for very large crude carriers traveling from the Persian Gulf to China recently approached $250 per metric ton, equivalent to approximately $35 per barrel. Citi said those rates were more than 20 times their average over the previous decade.The increase reflects significant changes in regional petroleum transportation following disruptions to the Strait of Hormuz, historically one of the world’s most important energy shipping corridors.More than 1 million barrels per day of Gulf crude exports were transferred between vessels during September, representing approximately 7.5% of regional flows. Such transfers were virtually nonexistent before the conflict, according to Citi.Although alternative transportation arrangements have helped restore shipments, they require additional equipment, vessel capacity, and handling operations.The resulting costs create challenges for refiners, particularly in Asia, where many facilities depend heavily on imported Middle Eastern crude.Higher delivered feedstock expenses can reduce processing margins unless refiners recover those costs through stronger gasoline, diesel, and other petroleum product prices.For Gulf producers, elevated freight rates may also affect the competitiveness of exported crude, potentially requiring pricing adjustments to maintain customer demand.U.S. producers could face a different set of market conditions. Changes in international crude sourcing may influence export opportunities, regional price differentials, and demand for alternative supplies.Meanwhile, tanker operators and maritime service providers may benefit from higher freight rates, although security threats, insurance expenses, and operational disruptions introduce additional risks.The broader economic implications extend beyond crude markets.Transportation expenses ultimately influence the cost of supplying refined petroleum products, including diesel and jet fuel, which remain essential to freight transportation, agriculture, manufacturing, and commercial aviation.Citi’s assessment comes as renewed attacks on regional infrastructure and shipping routes continue to raise concerns about the durability of the Gulf export recovery.Further improvements in production and loading capacity could increase available supplies, but lower delivered costs will depend partly on restoring efficient transportation routes.For energy investors, tanker availability, freight rates, refinery margins, and actual cargo deliveries will remain important indicators of whether the supply recovery is translating into more stable petroleum markets.The latest assessment underscores a critical distinction: increasing oil exports does not necessarily reduce energy costs when the infrastructure required to transport those supplies remains disrupted.Disclaimer This informational, opinion, and insights article is provided for informational purposes only and does not constitute investment, legal, or financial advice. The views expressed are based on publicly available information and market conditions at the time of publication and are subject to change without notice.