Oil Prices Rise on Ongoing Middle East Supply Concerns
Oil prices rose for the second consecutive session on Tuesday, fueled by ongoing concerns over Middle East supply disruptions caused by the US-Israeli war on Iran. Brent crude futures for November increased $1.71 (1.6%) to $106.99 a barrel at 0626 GMT, while the more actively traded December contract rose $1.68 to $99.51 a barrel.
US West Texas Intermediate crude also saw an increase, reaching $94, up $1.4 (1.5%). The rise in prices comes despite some signs of recovering crude exports from the region, with major Middle Eastern producers reporting 12.8 million barrels per day in September, the highest since February.
However, analysts point out that these increased shipments often rely on workarounds such as ship-to-ship transfers, which are less efficient and more costly than normal operations. This is why crude prices remain elevated, according to KCM Trade chief analyst Tim Waterer.