09 / 10
Oil rises on Middle East supply concerns
Supply fears outweighed evidence that crude exports from Gulf producers were recovering.
What happened
Oil prices rose for a second session on September 29 as concern that the US-Israeli war on Iran could disrupt Middle East supplies outweighed evidence of recovering regional exports. Traders focused on the Strait of Hormuz, a key route for oil moving from Gulf producers to world markets.
Numbers
- $106.99Brent price per barrel — November futures price
- 12.8 million barrels dailySeptember Middle East crude exports — Highest since February
- 11.2 million barrels dailyCrude crossing Hormuz weekly — Vortexa estimate
Questions
- Which exporters lifted regional flows?
- Saudi Arabia and the United Arab Emirates drove the September increase in Middle East crude shipments, according to preliminary Kpler data.
- Why did prices rise despite exports?
- Preliminary data showed higher shipments from Saudi Arabia and the United Arab Emirates, but traders still feared transit disruptions through Hormuz.
- How can higher oil affect markets?
- Higher crude prices can raise fuel costs and inflation, while higher inflation can lift bond yields and weigh on share prices.
- Is traffic back to normal?
- Vortexa put total oil-product flows through the strait below prewar levels, despite a recovery in crude shipments.
Q1
Q2
Q3
Q4
The catch
Coverage has not confirmed a new supply interruption or how long the price move will last.
Prices later eased.