Middle East Supply Risks Keep Oil Prices Elevated Despite Recovering Exports
Oil prices slipped on Tuesday as recovering Middle East exports failed to offset continued concerns about U.S.-Israeli war risks disrupting supplies.
Brent crude, or UKOIL for November, fell 1.3% to $103.94 a barrel, while U.S. West Texas Intermediate, or CL1!, dropped 1.9% to $90.77 by 8:10 a.m. ET.
Despite Tuesday's modest declines, Brent is headed for a monthly gain of about 15%, while WTI is up roughly 7%. Oil remains priced well above pre-war levels, keeping energy costs and inflation risks elevated even as Gulf producers restore shipments.
The key question is whether improving exports can overcome the geopolitical risk premium. A sustained easing of tensions could pressure crude prices, while renewed disruption around major shipping routes could quickly push them higher.