Oil Rises Amid Assessment of Middle East Export Strength
Kuwaiti oil prices rose as exports continued despite security tensions in the Strait of Hormuz and G7 intervention.
Translated by Qiyas from الجريدة — Original source
The price of a barrel of Kuwaiti crude rose by $1.31 to reach $107.22 per barrel in yesterday’s trading, compared to $105.91 in last Friday’s trading, according to the price announced by the Kuwait Petroleum Corporation.
In global markets, oil prices edged higher today, as security concerns in the Middle East kept geopolitical risk premiums elevated in the market, even as strong crude exports from the region and the G7’s release of emergency stockpiles helped ease supply worries.
Brianika Sachdeva, head of market research at Philip Nova, said: “Shipping data show that crude oil exports from the region have actually exceeded pre-war levels on several days in late September. Alternative routes and logistical adjustments have, to some extent, allowed producers to maintain the flow of supplies despite disruptions around the Strait of Hormuz.”
She added: “However, it does not yet seem reasonable to consider this a full return to normal supply conditions, as attacks on oil tankers in the Strait of Hormuz area have resumed, and the number of incidents has risen over recent days. This means that although oil shipments continue to flow, their transportation costs, insurance premiums, shipping routes, and associated security risks remain high.”
Data showed that oil flows from the Gulf region, excluding Iran, rose to more than 81 percent of pre-war levels in September, supported by a recovery in Saudi exports, despite attacks on the kingdom’s oil infrastructure and escalating Iranian attacks on shipping in the region, while Iranian exports fell to zero due to the US embargo.
In another move to ease supply concerns, G7 countries agreed on Friday to release 100 million barrels of diesel and crude oil from emergency reserves, and pledged to refrain from imposing restrictions on energy exports following pressure from US President Donald Trump.
Vivek Dhar, an analyst at the Commonwealth Bank of Australia, noted that other market factors, such as declining oil inventories, are making traders hesitant to believe that lower prices can persist.
He added that oil shipping rates from the Gulf to Asia also rose to new record levels, underscoring ongoing pressures in the shipping market and highlighting another aspect of the oil supply chain that can barely tolerate disruptions.
