Brent crude remains above $100 a barrel as Iran tensions, US military activity and fuel supply concerns keep global energy markets volatile.
Web Desk: Global oil prices remained above $100 a barrel on Friday as investors assessed rising tensions involving Iran, increased US military activity in the Middle East and continuing concerns over global fuel supplies.
According to Reuters figures cited by Express, Brent crude rose 29 cents to $102.60 a barrel, while US West Texas Intermediate (WTI) gained 27 cents to $93.14 a barrel at the time of the report.
The modest gains followed a sharp rise in oil prices a day earlier, when Brent climbed by more than $4 and WTI gained more than $2.
Iran Tensions Keep Oil Market Under Pressure
Market attention has remained focused on developments involving Iran and the potential impact on regional energy supplies.
Reports that the United States was preparing to send a third aircraft carrier and up to 10,000 additional troops to the Middle East added to concerns about a possible escalation and its implications for oil flows. Reuters reported that the increased US military presence was being closely watched by traders.
The geopolitical uncertainty has contributed to higher risk premiums in energy markets as investors assess the possibility of further disruption to oil and fuel shipments.
China Restricts Some Fuel Exports
Another factor affecting the market is China’s decision to suspend oil-product exports for October to destinations other than Hong Kong and Macau, according to the Express report citing Reuters.
The move has raised concerns about the availability of refined products such as diesel, gasoline and jet fuel in international markets.
Diesel supplies are already under pressure, making additional restrictions on exports a significant factor for traders and energy consumers.
Saudi Exports Provide Some Relief
Improving oil exports from Saudi Arabia have provided some counterweight to the supply concerns.
Higher Saudi shipments have helped ease some pressure on the market as regional crude flows gradually recover. Reuters reported that Middle Eastern crude exports have been improving, although broader fuel-market conditions remain tight.
The recovery in regional supplies has prevented oil prices from rising further despite continued geopolitical uncertainty.
Markets Remain Volatile
Oil prices had already recorded a strong monthly increase in September.
According to the report, Brent crude gained approximately 14% during September, while WTI increased around 4%.
However, the market picture remained mixed on Friday. Reuters later reported that oil prices eased during the session as traders assessed signs of recovering Middle Eastern supplies and discussions over possible releases of emergency diesel and crude stockpiles.
Brent subsequently fell below the levels reported earlier in the day, highlighting the volatility surrounding global energy markets.
Global Fuel Supply Remains a Key Concern
Energy markets continue to monitor developments across the Middle East, particularly shipping routes and refined-product supplies.
The Strait of Hormuz remains strategically important for global energy trade, while security concerns and elevated shipping costs continue to influence market expectations. Reuters reported that LNG shipments through the waterway increased in September, but security and cost concerns remain.
