Oil Prices Rise for Second Session as Middle East Supply Fears Persist
SINGAPORE — WEB DESK: Global oil prices rose for a second consecutive session on Tuesday as continuing concerns over potential Middle East supply disruptions outweighed signs that crude exports from the region were recovering.
Brent crude futures climbed $1.49, or 1.4%, to $106.77 a barrel, while US West Texas Intermediate (WTI) crude advanced $1.34, or 1.5%, to $93.94 a barrel. Both benchmarks had also ended the previous session nearly $1 per barrel higher.
The market remains focused on the impact of the US-Iran conflict and the resulting risks to energy shipments through the Middle East. Although more crude is leaving Gulf producers, analysts say some of the increase depends on less-efficient and more expensive logistical alternatives, including ship-to-ship transfers.
Preliminary data from Kpler showed crude exports from major Middle Eastern producers reached 12.8 million barrels per day in September, their highest level since February. Higher shipments from Saudi Arabia and the United Arab Emirates helped drive the increase.
Despite the recovery in exports, geopolitical uncertainty continues to support oil prices. US and Iranian officials have separately engaged with mediators in renewed efforts to bring the seven-month conflict to an end, according to Reuters. Further discussions are expected to focus on an amended version of a proposal presented by Iran during last week’s United Nations General Assembly meetings.
Attention remains particularly focused on the Strait of Hormuz, one of the world’s most important maritime routes for oil and gas shipments. Disruption to traffic through the strategic waterway has already contributed to volatility across global energy markets.
Analysts at UOB said the US-Iran standoff remains the dominant risk for both energy prices and inflation expectations, while uncertainty about a diplomatic settlement continues to keep supply concerns elevated.
Higher crude prices could have broader implications for fuel-importing economies by raising energy and transportation costs and adding to inflationary pressures if elevated prices persist.
