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

Business Recorder reported that crude oil prices extended their gains to a second straight session on Tuesday, as worries over Middle East supply persisted despite signs of higher Gulf exports. The November Brent contract climbed $1.71, or 1.6 per cent, to $106.99 a barrel by 0626 GMT, while the more heavily traded December contract added $1.68 to $99.51. West Texas Intermediate was quoted at $94, up $1.4 or 1.5 per cent.

Kpler's early figures, released on Monday, put crude exports from the region at 12.8 million barrels per day in September, a level not seen since February. Increased loadings from Saudi Arabia and the United Arab Emirates helped lift the total. KCM Trade chief analyst Tim Waterer noted that much of the gain depends on ship-to-ship transfers, which cost more and move oil less efficiently.

Diplomacy continues, with officials from the US and Iran separately contacting mediators in a fresh attempt to end the seven-month conflict. Talks are expected to center on a revised version of Iran's seven-day plan, which it put forward last week. UOB analysts said the continuing US-Iran dispute is the top threat to energy costs and inflation outlooks. Reuters, citing people familiar with the matter, reported that Washington is weighing regulatory relief to broaden sales of red-dyed diesel, a move that could let some buyers avoid federal fuel tax.