Oil rises 0.6% as Middle East supply risks outweigh recovering Gulf exports

  • Oil prices rose for a second session as Middle East supply disruption concerns persisted.
  • Brent gained 0.6% to $105.91, while WTI rose 0.8% to $93.32.
  • September Middle Eastern crude exports reached 12.8 million barrels daily, Kpler data showed.

Oil prices rose for a second straight session as concerns about supply disruptions linked to the US-Iran conflict outweighed evidence of recovering crude exports from the Middle East. Brent crude futures gained 63 cents, or 0.6%, to $105.91 a barrel by 0002 GMT, while US West Texas Intermediate rose 72 cents, or 0.8%, to $93.32. Crude exports from major Middle Eastern producers reached 12.8 million barrels a day in September, their highest level since February, preliminary Kpler data showed, supported by increased shipments from Saudi Arabia and the United Arab Emirates. Much of the additional Gulf supply is moving through ship-to-ship transfers, which are less efficient and more expensive than normal operations, keeping prices elevated. Separate discussions between US and Iranian officials and mediators renewed efforts to end the seven-month war, with future talks expected to focus on an amended version of Iran's seven-day proposal presented the previous week on the sidelines of the United Nations General Assembly. The prospect of a deal has helped keep Brent from moving sustainably above $110 in the near term. The conflict, which began in late February with US and Israeli attacks on Iran, has increased focus on the Strait of Hormuz, a vital oil and gas shipping route whose disruption has unsettled energy markets. Separately, the US is considering regulatory relief that would enable broader sales of red-dyed diesel and potentially help some buyers avoid federal fuel taxes; the proposal is being considered as an alternative to a diesel export ban.

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