Oil Rises for Second Session Amid Middle East Supply Concerns - Sarmad
Oil prices rose for a second consecutive day on Tuesday, as ongoing concerns about supply disruptions from the Middle East due to the conflict between the United States and Iran overshadowed signs indicating a recovery in crude exports from the region.
Brent crude futures rose by 63 cents, or 0.6 percent, to $105.91 per barrel by 00:02 GMT, while U.S. West Texas Intermediate crude rose by 72 cents, or 0.8 percent, to $93.32 per barrel.
Tim Waterer, an analyst at KCM Trade, said, “A clearer picture is emerging of increased oil exports leaving the Gulf region, but a significant portion of this increase still relies on alternative methods such as ship-to-ship transfers. These methods are less efficient and more costly than standard operations, which is why crude prices remain elevated.”
Preliminary figures from data firm Kpler on Monday showed that crude oil exports from major Middle Eastern producers rebounded in September to 12.8 million barrels per day, the highest level since February, driven by increased shipments from Saudi Arabia and the United Arab Emirates.
Officials from the United States and Iran stated that representatives from both countries held separate talks with mediators as part of new efforts to end the war that erupted seven months ago.
It is widely expected that any upcoming talks will focus on a modified version of a seven-day proposal Iran presented last week on the sidelines of the United Nations General Assembly.
Waterer said, “It can be argued that this persistent hope of reaching an agreement is the main factor preventing Brent crude from sustainably rising above $110 in the near term.”
He added that there are competing factors, and traders are trying to distinguish between genuine and weak signals.
The war, which began in late February with American and Israeli attacks on Iran, has focused attention on the Strait of Hormuz, a vital shipping lane for oil and gas supplies, whose disruption has caused turmoil in energy markets.
