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Global oil prices rose for a second straight session on Tuesday (September 29) as the prolonged US-Iran conflict heightened concerns over potential disruptions to crude supplies from the Middle East.
Brent crude futures rose $1.49, or 1.4 per cent, to $106.77 a barrel, while US West Texas Intermediate (WTI) crude gained $1.34, or 1.5 per cent, to $93.94. Both benchmarks had increased by about $1 in the previous session.
Despite a recovery in regional oil exports, traders remained concerned about the cost and reliability of alternative shipping routes. KCM Trade chief market analyst Tim Waterer said higher Gulf exports were being supported partly by costly and slower ship-to-ship transfers, adding to upward pressure on prices.
Data from commodities intelligence firm Kpler showed crude exports from major Middle Eastern producers rose to 12.8 million barrels per day in September, the highest level since February. The increase was driven mainly by higher shipments from Saudi Arabia and the United Arab Emirates.
However, September exports remained about 6 million barrels per day below the 18.8 million bpd recorded in February.
Meanwhile, Washington and Tehran have renewed diplomatic efforts to end their seven-month conflict, with officials from the two sides holding indirect talks through mediators.
The discussions could centre on a revised version of a seven-day ceasefire proposal put forward by Iran last week on the sidelines of the UN General Assembly.
Analysts at UOB said uncertainty remained high, warning that the prolonged US-Iran confrontation and developments around the Strait of Hormuz could continue to fuel inflation and pose risks to global oil supplies.
