Oil prices rose for a second consecutive session on Tuesday as persistent concerns over disruptions to Middle Eastern supplies caused by the US-Iran conflict outweighed signs of a recovery in crude exports from the region.
Brent crude futures rose 63 cents, or 0.6%, to $105.91 a barrel by 00:02 GMT, while US West Texas Intermediate crude gained 72 cents, or 0.8%, to $93.32 a barrel.
“Greater clarity is emerging around higher volumes of oil exports leaving the Gulf region, but much of the increase still relies on alternative methods such as ship-to-ship transfers,” said Tim Waterer, an analyst at KCM Trade.
“These methods are less efficient and more costly than normal operations, which is why crude prices remain elevated,” he added.
Preliminary data from oil analytics firm Kpler on Monday showed that crude exports from major Middle Eastern producers rebounded in September to 12.8 million barrels per day, the highest level since February, supported by increased shipments from Saudi Arabia and the United Arab Emirates.
US and Iranian officials said representatives from the two countries held separate discussions with mediators as part of renewed efforts to end the war, which began seven months ago.
Any upcoming talks are widely expected to focus on a revised version of a seven-day proposal put forward by Iran last week on the sidelines of the United Nations General Assembly.
“The continued hope of reaching an agreement can be seen as the main factor preventing Brent crude from sustaining a move above $110 in the near term,” Waterer said.
He added that competing factors were shaping the market, with traders trying to distinguish between genuine signals and weaker indications.
The war, which began in late February with US and Israeli strikes on Iran, has focused attention on the Strait of Hormuz, a vital shipping route for global oil and gas supplies whose disruption has caused turmoil in energy markets.
Source: Reuters
