Oil Prices Hit Three-Week High Amid Ongoing Middle East Tensions
Oil prices have reached a three-week high due to concerns over supply disruptions in the Middle East. The ongoing impasse in the Iran war has left tensions high, and analysts predict further supply disruptions.
The Brent crude futures for October delivery rose by US$1.20 (S$1.53), or 1.3 per cent, to US$92.82 a barrel, while US West Texas Intermediate crude futures for September added 92 cents to US$86.75 a barrel.
UBS analyst Giovanni Staunovo said 'tensions in the Middle East remain high, leaving room for further supply disruptions.' He noted that lower oil exports from the region are tightening the market.
Nissan Securities Investment's chief strategist Hiroyuki Kikukawa added that the market is likely to maintain a gradual upward trend due to uncertainty over peace talks and tensions involving the UAE, Oman, and Iran.