Oil Prices Bounce Back Amid Middle East Tensions
Crude oil prices edged higher this morning after settling 3.4% lower yesterday, as markets weighed hopes for constructive discussions at this week's UN General Assembly against ongoing Middle East supply risks.
The US has intensified pressure on Iran, warning it will shut down Iranian airlines from Wednesday and imposing additional sanctions on foreign firms doing business with Iranian carriers.
Supply-side risks remain elevated, particularly in Libya where the Sharara oilfield has seen output fall to around 127k bbl/d, down from roughly 340k bbl/d, after an armed group blocked the pipeline linking the field to the Zawiya export terminal.
Russia may extend its ban on most diesel exports as refinery runs remain constrained by repeated Ukrainian attacks on energy infrastructure, Bloomberg reported. This would tighten refined product availability and support gasoil and gasoline cracks in Western markets.