Oil prices rise for second session on continued Middle East supply concerns

Brent November futures rose $1.71, or 1.6%, to $106.99 a barrel, while the more actively traded December contract gained $1.68 to $99.51. U.S. West Texas Intermediate crude was up $1.40, or 1.5%, at $94. Both benchmarks had closed nearly $1 higher the previous day.

Crude exports from major Middle Eastern producers climbed to 12.8 million barrels a day in September, their highest level since February, preliminary figures from Kpler showed. KCM Trade chief analyst Tim Waterer said the increase relied in part on ship-to-ship transfers, which are less efficient and more costly than normal operations.

U.S. and Iranian officials spoke separately with mediators in a renewed effort to end the seven-month war, with further talks widely expected to focus on an amended version of Iran’s seven-day proposal. UOB analysts said the U.S.-Iran standoff remained the dominant risk for energy prices and inflation expectations. The U.S. is also considering regulatory relief to allow broader sales of red-dyed diesel, a proposal that could let some buyers avoid federal fuel tax.