Oil stays above $100 amid Middle East supply concerns

Oil prices edged higher in early trading on Tuesday as investors weighed continuing developments in the Middle East and the risk of further disruption to global supplies, according to Mettis Global. Brent crude futures rose 0.15 per cent to $100.47 per barrel, while West Texas Intermediate futures slipped $0.07 to $89.37 per barrel by 11:15 am PST.

Saudi Aramco chief executive Amin Nasser told an Energy Intelligence conference in London that restocking worldwide oil reserves might require as long as two years. He added that market strain would persist until the Strait of Hormuz is fully open again and energy markets regain confidence, noting the route typically accounts for 20% of global oil and LNG flows.

Nasser said close to 3 billion barrels of supply had been lost since the US and Israel began military strikes on Iran in late February, while about 1 billion barrels had come out of inventories. On Friday, G7 nations pledged to draw 100 million barrels from emergency stockpiles, covering diesel and crude. Naeem Aslam of Zaye Capital Markets said prices reflect elevated geopolitical risk alongside expectations that supply conditions could become less tight.