Oil Prices Rise for Second Day Amid Ongoing Middle East Supply Concerns

Oil prices rose for a second consecutive session on September 29 as concerns over Middle East supply disruptions persisted. Brent crude futures increased by $1.49, or 1.4%, to $106.77 per barrel, while US West Texas Intermediate (WTI) crude climbed to $93.94, up $1.34, or 1.5%. The previous session saw both benchmarks close at nearly $1 a barrel higher.

The Middle East supply disruptions are largely attributed to the ongoing US-Iran conflict, which has raised concerns about the stability of oil exports from major producers in the region. Despite signs of recovering crude exports from Saudi Arabia and the United Arab Emirates, the methods used to transport oil through workarounds such as ship-to-ship transfers are less efficient and more costly.

KCM Trade chief analyst Tim Waterer noted that a clearer picture is emerging of higher oil export volumes leaving the Gulf, but much of this increase relies on these workarounds. US and Iranian officials have spoken separately with mediators in an effort to end the seven-month war, with further talks expected to focus on an amended version of Iran's proposal.