Oil prices rose on September 29 for a second consecutive session. This came as concerns about supply disruptions from the Middle East caused by the conflict between the United States and Iran outweighed signs of recovering oil exports from the region. UNN reports, citing Reuters.
Details
Brent crude futures rose by $1.49, or 1.4%, to $106.77 per barrel by 3:26 GMT (6:26 a.m. Kyiv time), while U.S. West Texas Intermediate crude rose by $1.34, or 1.5%, to $93.94. Both grades closed the previous session nearly $1 per barrel higher.
"A clearer picture is emerging of increased oil export volumes from the Persian Gulf, but most of this increase still depends on workarounds such as ship-to-ship transfers. These methods are less efficient and more expensive than standard operations, so oil prices remain high," said KCM Trade Chief Analyst Tim Waterer.
Oil exports from the largest Middle Eastern producers rose to 12.8 million barrels per day in September, reaching their highest level since February, preliminary data from analytics firm Kpler showed on Monday, driven by increased shipments from Saudi Arabia and the United Arab Emirates.
According to officials from both countries, the United States and Iran held separate talks with intermediaries as part of renewed efforts to end the seven-month war. Further negotiations are expected to focus on a revised version of the seven-day proposal submitted by Iran on the sidelines of the United Nations General Assembly.
What risks oil prices face
"The main risk remains the confrontation between the United States and Iran and its consequences for energy prices and inflation expectations," UOB said in a research note to clients.
"Iranian officials are reportedly pessimistic about reaching an agreement before the situation in the Strait of Hormuz escalates further, which supports a high level of uncertainty over oil supplies."
The war, which began in late February with U.S. and Israeli attacks on Iran, has drawn attention to the Strait of Hormuz, the most important shipping route for oil and gas supplies, disruption of which has upended energy markets.
Meanwhile, the United States is considering easing regulations to allow broader sales of red-dyed diesel fuel to help lower prices, which could allow some buyers to avoid the federal fuel tax, people familiar with the discussions told Reuters. The proposal emerged after several days of discussions as one of the main alternatives to a ban on diesel fuel exports.