Oil prices rise for second session as US-Iran conflict fuels supply concerns

Oil prices rise for second day.

Oil prices today: Oil prices rose for a second consecutive session on Tuesday as concerns over potential disruptions to Middle East supplies due to the US-Iran conflict outweighed signs of recovering crude exports from the region.At 8:28 am IST, Brent crude was trading at $106.86 a barrel, up $1.58, or 1.50%, while WTI crude was at $93.86 a barrel, higher by $1.26, or 1.36%.Brent crude futures rose 63 cents, or 0.6%, to $105.91 a barrel by 7:30 AM IST while US West Texas Intermediate (WTI) crude was up 72 cents, or 0.8%, at $93.32.Crude exports from major Middle Eastern producers increased to 12.8 million barrels per day in September, the highest level since February, preliminary data from oil analytics firm Kpler showed on Monday.The increase was driven mainly by higher shipments from Saudi Arabia and the United Arab Emirates.However, the recovery in exports has done little to ease concerns about the potential impact of the conflict on regional oil supplies, particularly through the Strait of Hormuz.US and Iranian officials separately held talks with mediators in a renewed effort to end the seven-month conflict, officials from both countries said.

Further negotiations are widely expected to focus on an amended version of a seven-day proposal put forward by Iran last week on the sidelines of the United Nations General Assembly.The conflict, which began in late February with US and Israeli attacks on Iran, has drawn renewed attention to the Strait of Hormuz, a key shipping route for global oil and gas supplies. Any disruption to the waterway could have a significant impact on energy markets.Meanwhile, the United States is considering regulatory relief to allow wider sales of red-dyed diesel as part of efforts to lower fuel prices, Reuters reported citing sources.The proposal could allow some buyers to avoid the federal fuel tax. It emerged after several days of deliberations as an alternative to a proposed ban on diesel exports.