On Monday, October 6, the price of Brent crude oil rose by 3.22% to $107.50 per barrel. Meanwhile, West Texas Intermediate crude oil also increased by 2.38% to $94.35. This price increase has occurred amid high geopolitical risks.
Analysis of the Oil Market Situation
Analysts at ANZ stated in a note that the attacks by Ansar Allah on Saudi Arabia continue, leading to vulnerabilities in the oil supply flows in the region. Additionally, Brent crude oil increased by 0.4% last week, while West Texas crude faced a 7.9% decline. This price drop is related to concerns about a potential ban on diesel exports by the U.S., which could limit the country's refining output.
Read more: Impact of U.S. Diesel Export Ban on Fuel Prices
Consequences of Rising Oil Prices
ANZ analysts also noted that the supply of refined petroleum products remains under pressure. Unprecedented diesel prices in the U.S. have intensified inflationary risks and reignited discussions about potential restrictions on diesel exports. Any restrictions on U.S. diesel exports could reduce supply outside the country, consequently increasing energy prices in Europe.
Data released by Kpler shows that Saudi Arabia and the United Arab Emirates have increased their oil exports. The crude oil exports of key Middle Eastern producers returned to 12.8 million barrels per day in September, the highest level since the onset of the war in February this year. This increase in exports reflects the efforts of producing countries to maintain balance in the global oil market.
Read more: Ministry of Oil Pursues Improvement of Service Quality in Emergency Administrative System · Russian Oil Production Decreases Due to Sanctions
