Oil Prices Edge Higher as Middle East Exports Recover
Oil prices edged higher on Thursday as Middle East crude exports continued to recover towards prewar levels, easing some immediate supply concerns. Despite ongoing risks around regional shipping and the U.S.-Iran conflict, Brent crude futures gained 0.5% to $98.56 a barrel, while West Texas Intermediate futures were up 0.4% to $88.70 a barrel.
Major banks have raised their oil-price forecasts due to the Iran conflict and risk of renewed supply disruptions. A Wall Street Journal survey put Brent at an average of $90.22 a barrel in the fourth quarter, up from previous estimates of $78.92. Meanwhile, Middle East crude exports have rebounded to 17.5 million barrels a day on a 10-day average, or 98% of prewar levels.
The recovery has been supported by restored flows through Saudi Arabia’s East-West pipeline and greater use of alternative export routes. Excluding Iran, at least 16.5 million barrels a day of crude left the Middle East Gulf region in September, matching its prewar average, according to Kpler.