Oil Prices Rise For Second Session As Middle East Supply Concerns Persist.
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Crude oil prices advanced for a second consecutive session as persistent supply concerns tied to the Middle East conflict outweighed reports of a partial recovery in regional crude shipments. Brent crude futures for November rose $1.71 (1.6%) to settle at $106.99 a barrel, while the more active December contract climbed to $99.51. Meanwhile, US West Texas Intermediate (WTI) increased $ 1.40 (1.5%) to $94.00 a barrel. While preliminary data indicated that Middle Eastern exports reached 12.8 million barrels per day in September the highest level since February analysts noted that much of the volume relies on costly and less efficient shipping workarounds, such as ship-to-ship transfers. Ongoing uncertainties surrounding the Strait of Hormuz, alongside stalled diplomatic initiatives to resolve the US-Iran conflict, continue to anchor a high geopolitical risk premium across global energy markets.
Oil prices rose for a second consecutive session on Tuesday as concerns over disruptions to Middle Eastern crude supplies continued to outweigh signs of recovering exports from the region.
Brent crude futures for November rose $1.71, or 1.6%, to $106.99 a barrel by 0626 GMT, while the more actively traded December contract gained $1.68 to $99.51. US West Texas Intermediate crude increased $1.40, or 1.5%, to $94.
The latest gains came despite indications that crude exports from major Middle Eastern producers are recovering. Preliminary Kpler data showed exports from the region reached 12.8 million barrels per day in September, the highest level since February, supported by higher shipments from Saudi Arabia and the United Arab Emirates.
However, much of the additional oil is being moved through alternative arrangements, including ship-to-ship transfers, which are less efficient and more expensive than normal shipping operations. KCM Trade chief analyst Tim Waterer said these workarounds were helping exports recover but were also keeping crude prices elevated.
The market remains focused on the Strait of Hormuz, a critical route for global oil and gas shipments. The prolonged US-Israeli war with Iran has disrupted energy markets and raised concerns that further escalation could restrict flows through the waterway.
Diplomatic efforts are also being closely watched. US and Iranian officials have separately engaged with mediators in renewed efforts to end the seven-month conflict. Market analysts said the possibility of an agreement is one factor limiting expectations for Brent to sustain levels above $110 a barrel.
UOB analysts said the US-Iran standoff remains a key risk for energy prices and inflation expectations, with uncertainty over the Strait of Hormuz continuing to influence the market.
Meanwhile, the US is considering regulatory measures that could allow wider sales of red-dyed diesel, potentially reducing fuel costs for some buyers by allowing them to avoid federal fuel taxes. The proposal is being considered as an alternative to a possible diesel export ban.
