West Asia Supply Concerns Keep Oil Prices Elevated
Oil prices continued their upward trend for a second consecutive session on Tuesday due to ongoing concerns about supply disruptions in West Asia caused by the US-Iran conflict.
The Brent crude futures price rose $1.49, or 1.4 percent, to $106.77 per barrel by 0326 GMT, while US West Texas Intermediate crude increased by $1.34, or 1.5 percent, to $93.94 per barrel.
Despite an increase in crude exports from major West Asian producers, which climbed to 12.8 million barrels a day in September - the highest since February, according to preliminary figures from data provider Kpler - prices remain elevated due to less efficient and more costly workarounds such as ship-to-ship transfers.
KCM Trade chief analyst Tim Waterer noted that 'a clearer picture is emerging of higher oil export volumes leaving the Gulf,' but these methods are 'less efficient and more costly than normal operations.'