Crude oil prices increased for the second consecutive day on Tuesday (October 7) due to ongoing concerns about supply disruptions in the Middle East. The price of North Sea Brent crude oil rose by $1.71, or 1.6%, to $106.99 per barrel at 6:26 AM GMT. Additionally, active Brent oil contracts for delivery in December also rose by $1.68 to $99.51 per barrel.
Increase in WTI Oil Prices
The benchmark West Texas Intermediate (WTI) crude oil also increased by $1.04, or 1.5%, to $94 on the same day. These price changes followed an increase of about one dollar per barrel in Monday's trading (October 6). Analysts at United Overseas Bank (UOB) stated in their notes to clients that the main risk remains the tensions in the Middle East and their implications for energy prices and inflation.
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Impact of Tensions on the Energy Market
The war between the United States and the Israeli regime against Iran, which began in late February, has disrupted shipping in the Strait of Hormuz, a vital waterway for oil and gas transportation, causing turmoil in energy markets. These tensions have heightened concerns that oil and gas supply may be affected in the future. Therefore, analysts predict that prices will continue to fluctuate due to these tensions.
Meanwhile, news sources have reported that the United States is considering adjusting some regulations to facilitate broader sales of red diesel in order to reduce prices. This move may help some buyers avoid federal fuel taxes. This proposal has emerged as an alternative plan to the ban on diesel exports after days of review and consultation.
Read more: Brent Oil Above $105 Following Stalemate in US-Iran Peace Talks · Continuous Export of Iranian Crude Oil at a Capacity of 4 Million Barrels per Day
