Oil Prices Surge on Middle East Supply Fears

Global oil prices rose for the second consecutive session on September 29 as concerns about Middle East supply disruptions outweighed signs of recovery in commodity exports from the region.

Brent futures gained 63 cents, or 0.6%, to $105.91 per barrel, while US West Texas Intermediate crude rose by 72 cents, or 0.8%, to $93.32 per barrel.

KCM Trade chief analyst Tim Waterer pointed out that although oil export volumes from the Persian Gulf are increasing, a significant portion of these additional supplies depends on alternative transportation methods, including ship-to-ship transfers, which are less efficient and more expensive than standard operations.

Oil exports by the Middle East's largest producers rose to 12.8 million barrels per day in September, the highest level since February, driven by higher shipments from Saudi Arabia and the United Arab Emirates, according to preliminary data from Kpler.