Middle East Tensions Send Oil Prices Higher for Second Straight Day
Oil prices rose for a second consecutive day due to ongoing concerns over Middle East supply disruptions caused by the US-Iran conflict. Despite rising crude exports from major Gulf producers, prices remain elevated because of less efficient and more costly workarounds such as ship-to-ship transfers.
Preliminary data from Kpler showed that crude exports from major Middle Eastern producers reached 12.8 million barrels per day in September, the highest since February, thanks to increased shipments from Saudi Arabia and the UAE.
The ongoing conflict has focused attention on the Strait of Hormuz, a crucial shipping lane for oil and gas supplies, which has upended energy markets. Meanwhile, the US is considering regulatory relief to allow broader sales of red-dyed diesel to help lower prices.