Oil Surges on Escalating Tensions, Despite Improving Supplies

Oil prices have rebounded by almost 3% as tensions in the Middle East remain high. President Trump's refusal to accept an Iranian ceasefire has added to uncertainty, but physical supplies are improving with increased crude exports from OPEC countries.

The rebound is largely attributed to higher oil loadings from Saudi Arabia and the UAE, which have pushed production levels up to 12.8 million barrels per day in September. However, this still falls short of February's level of 18.8 million barrels per day.

As a result, attention will remain on developments in the Middle East, particularly with negotiations set to resume between the US and Iran this week. If no breakthrough is made, oil prices could continue to rise.