Oil prices rise as Brent crude hits $106.58 per barrel
Oil prices climbed Wednesday as traders assessed the outlook for increased Russian diesel supplies, with Brent futures rising to $106.58 per barrel.
Key Takeaways
AIOil prices rose on Wednesday as traders evaluated the prospects for increased diesel supplies from Russia.
Brent crude futures gained 89 cents, or 0.8 percent, to $106.58 per barrel, while US West Texas Intermediate (WTI) futures rose 80 cents, or 0.9 percent, to $94.94 per barrel.
According to Reuters, Hiroyuki Kikukawa, chief analyst at Nissan Securities, said, "An increase in Russian diesel exports could ease supply shortages in the market, which may limit any sharp moves in prices either up or down," predicting that WTI prices would range between $90 and $100 per barrel.
The Organization of the Petroleum Exporting Countries (OPEC) said Tuesday that the OPEC+ alliance recorded a sharp rise in production in September, driven by higher output from Saudi Arabia despite ongoing disruptions to shipments through the Strait of Hormuz caused by the Iran conflict.
Two senior Iranian officials told Reuters that Iran is using new tactics to target vessels passing through the Strait of Hormuz in an effort to keep oil prices elevated and influence the US midterm elections.