Oil rises for a second session amid Middle East supply concerns

Initial figures from Kpler Data on Monday showed that crude oil exports from major Middle Eastern producers rebounded in September to 12.8 million barrels per day, the highest level since February, driven by increased shipments from Saudi Arabia and the UAE, according to Reuters.

Tim Waterer, an analyst at KCM Trade, said: “A clearer picture is emerging of increased oil export volumes leaving the Gulf, but a significant portion of this increase still depends on alternative solutions.”

Officials from the United States and Iran said that officials from both countries had held separate talks with mediators as part of new efforts to end the war that erupted 7 months ago. It is widely expected that any future talks will focus on a modified version of a 7-day proposal submitted by Iran last week on the sidelines of the UN General Assembly.

Waterer said, “The ongoing hope for a deal is arguably the main factor preventing Brent crude from rising sustainably above $110 in the near term.” He added that there are competing factors, and traders are trying to distinguish between real and false signals.

The war, which began in late February with U.S. and Israeli attacks on Iran, has focused attention on the Strait of Hormuz, a vital shipping lane for oil and gas supplies whose disruption has caused turmoil in energy markets.