Global oil prices rose for a second consecutive session on Tuesday, with November Brent crude futures climbing $1.71, or 1.6%, to $106.99 a barrel. U.S. West Texas Intermediate rose $1.4, or 1.5%, to $94, as concerns persisted over disruptions to Middle East supplies due to the U.S.-Israeli war on Iran, despite signs of a recovery in the region’s crude exports.
Oman crude falls 23 cents
The official price of Oman crude for November delivery stood at $110.78 on Tuesday, down 23 cents from Monday’s price of $111.01.
The monthly average price of Oman crude for September delivery stood at $76.36 a barrel, down $2.73 from the price for August delivery.
The most actively traded December Brent contract also rose $1.68 to $99.51 a barrel. The two benchmarks had gained about $1 a barrel at the previous session’s settlement.
A clearer picture is emerging of higher oil export volumes leaving the Gulf region, but a large portion of the increase still relies on alternative solutions such as ship-to-ship transfers. These methods are less efficient and more expensive than normal operations, which is why crude prices continue to rise.
Producers’ exports rise to 12.8 million barrels per day
Preliminary figures released by data provider Kpler on Monday showed that crude oil exports from major Middle East producers rose to 12.8 million barrels per day in September, the highest level since February.
People familiar with the matter said the United States was considering easing some regulatory restrictions to allow greater sales of red-dyed diesel, in an effort to help lower prices, potentially enabling some buyers to avoid the federal fuel tax. The proposal followed days of deliberations and was viewed as a leading alternative to a diesel export ban.
Limited gains in Europe and Japanese stocks fall
European stocks rose on Tuesday, supported by the technology sector, but gains were limited by higher crude oil prices and bond yields. The pan-European STOXX 600 rose 0.3% to 640.28 points, with technology stocks among the biggest gainers, supported by advances in semiconductor companies.
Anthropic is betting that artificial intelligence will transform the global economy and that investors will help finance that transformation, with the company’s valuation expected to exceed $2 trillion after its initial public offering. Among individual stocks, Legrand shares jumped 5.8% after the French group, which specializes in electrical and digital infrastructure for buildings, raised its medium-term targets.
By contrast, Japan’s benchmark index fell for a second consecutive session on Tuesday, weighed down by a global rise in bond yields and higher oil prices. The Nikkei 225 fell 0.60% to close at 65481.27 points, while the broader Topix declined 1.72% to 4041.13 points.
The sell-off followed overnight declines in U.S. equities, as higher oil prices and U.S. Treasury yields increased concerns about inflation and the continuation of tight monetary policy. Japanese government bond yields are also hovering near their highest levels in several decades.
“It seems fair to say that these inflation concerns, and the resulting rise in interest rates, are weighing on the stock market,” said Wataru Akiyama, an equity analyst at Nomura Securities. He added: “With regard to AI-related stocks, which had served as a driving force in Japan’s stock market, there is a growing perception that they are relatively overvalued in an environment of higher interest rates.”
Thirty-six stocks on the Japanese index rose, while 188 fell. Nexon led the decliners, with its shares falling 14.42%, followed by Mitsubishi Motors, down 4.93%, and Idemitsu Kosan, which lost 4.92%. On the other hand, Tokai Carbon rose 4.75% to a record close, Disco gained 4.19% and Screen Holdings advanced 4.08%.
