Oil Prices Rise as US-Iran Conflict Weighs on Markets

Oil prices rose for a second consecutive session on September 29 due to concerns about supply disruptions from the Middle East. This came as the conflict between the United States and Iran weighed on markets, despite signs of recovering oil exports from the region.

Brent crude futures increased by $1.49, or 1.4%, to $106.77 per barrel, while U.S. West Texas Intermediate crude rose by $1.34, or 1.5%, to $93.94.

KCM Trade Chief Analyst Tim Waterer noted that a clearer picture is emerging of increased oil export volumes from the Persian Gulf, but most of this increase still depends on workarounds such as ship-to-ship transfers.

Oil exports from the largest Middle Eastern producers rose to 12.8 million barrels per day in September, driven by increased shipments from Saudi Arabia and the United Arab Emirates.