Brent crude rises to $109.69 a barrel, fuel price hikes expected in Turkey

Global oil prices rose sharply on concerns over tensions in the Middle East and the supply outlook. Brent crude, which traded near $105 a barrel in the morning, reached $109.69 during the session. The gain exceeded 3.5 percent and came close to 4 percent. West Texas Intermediate (WTI) crude also moved above $100 a barrel.

Analysts cited in the report said the risk that political and military tensions in the region could spread more widely is raising concerns about oil shipping and supply routes. Daily output losses caused by hurricanes and storms in the US Gulf of Mexico, which affect oil production there, were also cited as factors tightening supply. Rising US inflation expectations are adding to sensitivity toward energy costs.

Pressure at the pump

With the lira's exchange rate running high, the rise in crude is putting upward pressure on fuel prices in Turkey. Based on pricing in the first half of October, gasoline in major cities was sold at an average of 85 TL per liter, while diesel sold at 96 TL per liter.

The source did not specify the size or effective date of any increase. Expectations point to a rise at the pump if the gain in Brent prices holds. There are concerns that higher transport and logistics costs could feed through to prices of basic consumer goods, food in particular.