Middle East Supply Concerns Drive Oil Prices Higher
Oil prices rose for a second consecutive session on Tuesday due to ongoing concerns over potential disruptions to Middle East supplies. Brent crude futures gained 63 cents, or 0.6%, to $105.91 a barrel by 0002 GMT, while US West Texas Intermediate (WTI) crude rose 72 cents, or 0.8%, to $93.32 a barrel.
KCM Trade chief analyst Tim Waterer noted that rising oil exports from the Gulf were providing a clearer indication of improving supply flows. However, he pointed out that a significant portion of the increase was being facilitated through ship-to-ship transfers, which are more expensive and less efficient than conventional shipping operations.
Preliminary data from energy data provider Kpler showed crude exports from major Middle Eastern producers reached 12.8 million barrels per day in September, the highest level since February. Higher shipments from Saudi Arabia and the United Arab Emirates contributed to the increase.
The market's attention also remained focused on diplomatic efforts to end the seven-month conflict between the US and Iran. Officials from Washington and Tehran held separate discussions with mediators as efforts to revive negotiations continued.