Oil Prices Climb Amid Ongoing US-Iran Conflict and Middle East Supply Concerns
Oil prices rose for a second consecutive session on Tuesday (Sept 29) due to lingering concerns over Middle East supply disruptions caused by the US-Israeli war on Iran. Brent crude futures for November climbed $1.71, or 1.6%, to $106.99 a barrel at 6:26am GMT (2:26am SGT), while the more actively traded Brent December contract rose $1.68 to $99.51 a barrel.
The US West Texas Intermediate crude price increased by $1.4, or 1.5%, to $94. Analysts attribute the continued price elevation to less efficient and more costly ship-to-ship transfers used as workarounds for normal operations in the Gulf region.
Crude exports from major Middle Eastern producers rose to 12.8 million barrels a day in September, the highest since February, thanks to increased shipments from Saudi Arabia and the UAE. Despite this increase, UOB analysts warn that the dominant risk remains the US-Iran standoff and its implications for energy prices and inflation expectations.