Middle East Supply Risks Keep Oil Prices Elevated

Oil prices rose for the second consecutive day on Tuesday as concerns over potential disruptions to Middle East supplies continued to outweigh signs of a recovery in crude exports from the region.

Brent crude futures increased by $1.49, or 1.4 per cent, to reach $106.77 a barrel, while US West Texas Intermediate (WTI) crude gained $1.34, or 1.5pc, to $93.94.

The increase in prices came despite preliminary data showing that crude exports from major Middle Eastern producers increased to 12.8 million barrels per day in September, the highest level since February.

However, KCM Trade chief analyst Tim Waterer noted that much of this increase still relies on workarounds such as ship-to-ship transfers, which are less efficient and more costly than normal shipping operations.