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

Business Recorder reported that oil prices climbed for a second straight session on Tuesday, as worries over Middle East supply disruption tied to the US-Iran conflict outweighed signs of exports recovering. Early on Tuesday, Brent was quoted at $106.77 a barrel, up $1.49 or 1.4 per cent, while West Texas Intermediate stood at $93.94 after a rise of $1.34 or 1.5 per cent.

Preliminary Kpler figures released on Monday showed crude exports from leading Middle Eastern producers climbing to 12.8 million barrels daily in September, the top reading since February. KCM Trade chief analyst Tim Waterer said much of that increase depends on ship-to-ship transfers, which are costlier and less efficient than standard operations and keep crude prices high. UOB analysts called the US-Iran standoff the dominant risk, with knock-on effects for energy costs and inflation outlook.

Talks are likely to center on a revised form of Iran's seven-day proposal from last week, according to the report. US and Iranian officials separately contacted mediators in a renewed push to end the seven-month war. Business Recorder, citing Reuters, also said Washington is weighing regulatory relief to permit broader sales of red-dyed diesel, which could let some buyers sidestep federal fuel tax.