Eco
Oil prices experienced a second consecutive session of gains on Tuesday, primarily driven by persistent concerns regarding potential supply disruptions from the Middle East amid the ongoing conflict between the United States and Iran. This upward trend overshadowed indicators of recovering crude exports from the region, reflecting the markets' sensitivity to geopolitical tensions. Specifically, Brent crude futures saw an increase of $1.82, or 1.73%, reaching $107.10 per barrel by 04:07 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude rose by $1.54, or 1.66%, settling at $94.14. These increases occur despite preliminary figures released on Monday indicating a rebound in crude oil exports from major Middle Eastern producers during September. Exports reached 12.8 million barrels per day, marking the highest level since February, primarily attributed to increased shipments from Saudi Arabia and the UAE. In this context, analyst Tim Waterer of KCM Trade noted, "A clearer picture is forming of increased oil export volumes leaving the Gulf region, but a large part of this increase still relies on alternative solutions." On the diplomatic front, officials from the United States and Iran held separate discussions with mediators as part of renewed efforts to end the seven-month-long conflict. It is widely anticipated that future talks will focus on a modified version of a seven-day proposal submitted by Iran last week on the sidelines of the United Nations General Assembly. Waterer affirmed that "this continued hope for an agreement is the main factor preventing Brent crude from sustainably rising above $110 in the near term," adding that the market faces competing factors, with traders attempting to differentiate between genuine and weak indicators. It is worth noting that the war, which commenced in late February following U.S. and Israeli attacks on Iran, has drawn attention to the Strait of Hormuz. This vital shipping lane for global oil and gas supplies has, when disrupted, historically led to significant turmoil in energy markets.
