Oil prices rise for second session on continued Middle East supply concern
USO•Brent rose 0.6% to $105.91 a barrel and U.S. West Texas Intermediate gained 0.8% to $93.32 as Middle East supply concerns persisted. September crude exports from major regional producers reached 12.8 million barrels a day, their highest level since February.
1. Prices rise again
Oil prices rose for a second successive session on Tuesday, as lingering concern about supply disruptions linked to the US-Iran conflict outweighed signs of recovering regional crude exports. By 0002 GMT, Brent futures were up 63 cents at $105.91 a barrel, while WTI was up 72 cents at $93.32.
2. Exports and talks
Crude exports from major Middle Eastern producers climbed to 12.8 million barrels a day in September, the highest since February, preliminary Kpler figures showed. KCM Trade chief analyst Tim Waterer said higher export volumes still relied partly on less efficient and more costly workarounds, including ship-to-ship transfers. US and Iranian officials separately spoke with mediators in a renewed effort to end the seven-month war.
3. Diesel proposal considered
The US is considering regulatory relief that would allow broader sales of red-dyed diesel to help lower prices and could let some buyers avoid federal fuel tax. The proposal emerged as an alternative to a diesel export ban.
