Middle East Oil Exports Recover, But Prices Remain Elevated

Oil prices declined on Tuesday as investors focused on recovering crude exports from the Middle East and potential supply disruptions in the region. The Brent crude futures price was down $1.96, or 1.86%, to $103.32 a barrel at 1306 GMT, while US West Texas Intermediate crude was at $90.65, down $1.95, or 2.11%. Both Brent and WTI are headed for monthly gains of around 14% and 5.6%, respectively.

A clearer picture is emerging of higher oil export volumes leaving the Gulf, but much of that increase still relies on workarounds such as ship-to-ship transfers, said KCM Trade chief analyst Tim Waterer. Those methods are less efficient and more costly than normal operations, which is why crude prices remain elevated.

Saudi Arabia has resumed oil loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline, according to trade sources and shipping data, improving the outlook for Middle East oil exports. Crude exports from major Middle Eastern producers climbed to 12.8 million barrels a day in September, the highest since February, preliminary figures from data provider Kpler showed.