Middle East Conflict Drives Crude Oil Prices Higher Amid Ongoing Tensions
Crude oil prices continue to rise as the conflict in the Middle East shows no signs of abating. At the time of writing, Brent crude was trading at $95.55 per barrel, while West Texas Intermediate changed hands for $91.53 per barrel.
The ongoing war between Iran and the US, along with Israel's defense minister threatening to cripple Iran's infrastructure, including energy facilities, has propped up crude prices. However, analysts caution that the rally may lose traction if Hormuz shipments continue to move smoothly.
According to ING's commodity team, higher Iraqi oil exports, averaging 2.35 million barrels daily in August, are seen extending into this month. This is due to Iran's permission for vessels carrying Iraqi crude to pass through Hormuz.
Saudi Arabia's decision to leave the price for its flagship Arab Light unchanged for October loadings suggests that supply constraints are easing, although fuel supplies remain tight.