The price of Brent crude oil on Tuesday (September 31) reached $102.06 per barrel, indicating a 1.7% increase or $1.72 compared to the previous day. This price increase comes as investors focus on developments in the Middle East and ahead of the United Nations General Assembly.
Increase in WTI Oil Prices
Meanwhile, the price of WTI crude oil for October delivery, which expires today, increased by $1.62 or 1.7% to $97.04 per barrel. Additionally, crude oil contracts for November delivery also rose by $1.28 or 1.4%, reaching $93.65 per barrel.
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Market Analysts' Insights
Tim Waterer, senior market analyst at KCM Trade, stated that the rise in WTI and Brent oil prices is largely interpreted as a reaction to recent price declines and the closing of short positions. He also pointed to a decrease in traders' risk appetite due to diplomatic reports.
Waterer predicted that oil prices would likely fluctuate within a specific range, barring any fundamental changes in the diplomatic situation in the Middle East, and would be sensitive to news and headlines regarding developments.
Impact of Production Disruptions
Meanwhile, the National Oil Corporation of Libya announced that an armed group closed the number 7 pipeline transporting crude oil from the Sharara field to the Zawiya port. This action led to a significant reduction in production at the Sharara oil field. According to received information, production at this field has decreased to about 100,000 to 105,000 barrels per day, down from the previous production of around 200,000 barrels per day.
These developments, especially as oil prices are rising, could have significant implications for the global oil market. Given the recent volatility in oil prices and existing production disruptions, there is an increasing need to pay attention to political and economic developments in this area.
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