Oil traders in top consuming region Asia expect prices to remain elevated as fresh attacks dampen expectations for an imminent end to the Middle East conflict, while strong refining margins drive demand for physical supply, Reuters reports.

Benchmark Brent crude futures climbed back above $100 a barrel last week and rose a further 3pc today to their highest since May, after Houthi strikes on Saudi Arabia hit a key oil pipeline and Iran launched attacks on shipping.

The rally has spilled into physical markets, where spot premiums for benchmark Dubai and Oman crude rose last week to their highest since March, underscoring fierce competition for cargoes. Premiums for crude from West Africa, the US and Latin America also hit multi-month highs.

“Unlike in March, when there was no oil, there is oil now but we have to pay much higher prices,” said a trader with an Asian refiner, declining to be named as they were not authorised to speak to the media.