Oil Prices Near $100 Amid Middle East Supply Risks and Demand Uncertainty

Oil prices held near the $100 mark on Tuesday, as steady exports from the Middle East helped ease some supply concerns. Brent crude climbed to $100.6 a barrel, while WTI rose to $89.60. The gains came despite recent attacks on vessels in the Strait of Hormuz, a critical shipping route for Gulf oil supplies.

The supply outlook improved slightly after G7 nations agreed to release 100 million barrels of diesel and crude from emergency reserves. However, traders remain cautious due to ongoing attacks in the region, including a strike on Saudi Arabia by Yemen's Houthis targeting key infrastructure. The conflict between Saudi Arabia and Houthi forces continues to raise concerns about potential disruptions to oil supplies.

Industry executives warned that supply constraints could last well beyond the current crisis. Shipping bottlenecks, reduced refinery output, and depleted inventories may keep oil prices elevated into next year. Saudi Aramco's CEO, Amin Nasser, stated that replenishing global oil stockpiles could take up to two years, as 3 billion barrels have been lost since the start of the conflict, with 1 billion withdrawn from global inventories.

Demand recovery may also take longer than expected. ConocoPhillips' Executive Chair, Ryan Lance, predicted that global oil demand could take until 2028 or 2029 to fully rebound. Meanwhile, Brent futures traded just above $100, while WTI hovered near $90, as traders balanced stronger Middle Eastern exports against lingering supply risks.