Global Oil Prices Rise for Second Straight Day

Crude oil prices rose for a second consecutive day in the global market amid concerns over possible supply disruptions in the Middle East. The ongoing conflict between the United States and Iran and uncertainty surrounding key energy supply routes have put upward pressure on the oil market.
By 12:30 am Greenwich Mean Time on Tuesday (September 29), the price of international benchmark Brent crude had risen by 63 cents, or 0.6 per cent, to $105.91 a barrel. At the same time, the price of US West Texas Intermediate (WTI) rose by 72 cents, or 0.8 per cent, to $93.32 a barrel.
Reuters reported that although there are some signs of increased crude oil exports from the Middle East, concerns over supply continue to affect the market. According to preliminary data from Kpler, crude oil exports by major Middle Eastern producers rose to 12.8 million barrels per day in September, the highest level since the conflict began. Increased production by Saudi Arabia and the United Arab Emirates contributed to the rise.
However, the increase in supply depends on alternative and more costly transportation arrangements. In particular, methods such as ship-to-ship transfers of oil are being used. As a result, there is still no certainty that normal supplies from the Middle East have been fully restored.
Meanwhile, uncertainty surrounding the Strait of Hormuz remains a major concern for the oil market. Market participants believe that further disruptions to supplies through this key oil transit route could put additional upward pressure on international prices.
Although talks are underway to end the conflict between the United States and Iran, uncertainty remains over the prospects for an immediate resolution. Market participants are therefore closely monitoring the supply situation in the Middle East and operations in the Strait of Hormuz.
Source: Reuters