Oil Prices Rise on Ongoing Middle East Supply Concerns

Oil prices have risen for a second consecutive session as concerns over Middle East supply disruptions continue to weigh on markets. The US-Israeli war on Iran remains a major point of contention, with oil traders and analysts citing lingering uncertainty about crude exports from the region.

The Brent crude futures contract for November rose by 19 cents, or 0.2%, to $105.47 per barrel, while the December contract gained 11 cents to $97.94 per barrel. US West Texas Intermediate crude also increased, reaching $92.82 per barrel.

Despite some positive signs on oil exports from major Middle Eastern producers, analysts caution that these gains are largely due to workarounds such as ship-to-ship transfers, which are less efficient and more costly than normal operations.

KCM Trade chief analyst Tim Waterer noted that crude exports from Saudi Arabia and the United Arab Emirates have been increasing, but much of this increase still relies on these workaround methods. Crude exports from major Middle Eastern producers climbed to 12.8 million barrels per day in September, the highest level since February.