Middle East Supply Concerns Drive Oil Price Increase for Second Day

Oil prices rose for a second consecutive session on Tuesday due to ongoing concerns over Middle East supply disruptions stemming from the US-Iran conflict. The Brent crude futures price increased by $1.49, or 1.4%, to $106.77 per barrel, while US West Texas Intermediate crude rose by $1.34, or 1.5%, to $93.94 a barrel.

According to Tim Waterer, chief analyst at KCM Trade, the recent increase in oil export volumes from major Middle Eastern producers is less efficient and more costly than normal operations, contributing to elevated crude prices. Crude exports from Saudi Arabia and the United Arab Emirates have increased, with preliminary figures showing a total of 12.8 million barrels per day in September, the highest since February.

The US-Iran conflict continues to dominate market concerns, with officials from both countries holding separate talks with mediators in an effort to end the seven-month war. However, analysts at UOB expressed pessimism about reaching a deal before the Strait of Hormuz situation escalates further, keeping oil supply uncertainty elevated.