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

Oil prices extended their rise to a second consecutive day on Tuesday, as worries about Middle East supply interruptions tied to the US-Iran war outweighed evidence that regional crude exports were picking up. Brent crude gained $1.49 to reach $106.77 per barrel, a 1.4% increase, while US West Texas Intermediate, the American benchmark, edged up $1.34 to $93.94, or 1.5%. Both benchmarks had finished the previous session almost $1 a barrel higher, The Express Tribune reported.

Shipments of crude from leading Middle Eastern suppliers reached 12.8 million barrels daily in September, the strongest level since February, according to early Kpler data released Monday. Saudi Arabia and the UAE were behind part of the gain. KCM Trade chief analyst Tim Waterer said much of the extra volume relies on ship-to-ship transfers, which are less efficient and costlier than normal operations, so prices remain elevated.

Diplomacy is ongoing, with US and Iranian officials separately contacting mediators in an attempt to revive talks and end the seven-month conflict. Further discussions are expected to center on a revised form of the seven-day plan Iran offered last week. UOB analysts called the US-Iran standoff the chief hazard for energy costs and inflation outlook.