Brent crude stays above $101 after four day losing streak

Crude oil futures experienced a rise on Tuesday morning after four days of declining prices. As markets awaited potential US-Iran talks at the UN General Assembly, the price of Brent oil futures, denoted as November Brent, opened at $101.35, reflecting a 1.01% increase. West Texas Intermediate (WTI) crude oil futures, also known as November crude oil, opened at $93.07, marking a 0.76% gain.

In India, October crude oil futures on Multi Commodity Exchange (MCX) were trading at ₹8915 when the market opened, which is a 0.89% improvement from the previous close of ₹8836. November futures were trading at ₹8637, up by 0.78% from the previous close of ₹8570. US President Donald Trump indicated his willingness to engage in discussions with Iranian President Masoud Pezeshkian, and both are expected to participate in the UN General Assembly this week.

Iran has reportedly shared its conditions with mediators for re-engaging in negotiations with the US. Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, highlighted in their latest commodities feed that supply concerns continue to be a major issue. Saudi Aramco, the state-owned oil company, warned European customers that it might be unable to fulfill long-term contracts due to disruptions in the East-West pipeline caused by recent drone attacks.

The pipeline's full restart could take several weeks. This reduced Saudi supply has created a shortage in the European market, leading to some North Sea crude grades to trade at significant premiums to benchmark prices. A Reuters report citing three unnamed sources revealed that China has privately asked Iran to help curb attacks by the Houthis, following Saudi Arabia's appeal for assistance after a recent increase in Houthi military operations.

Saudi Aramco has increased its exports through the Strait of Hormuz since the East-West Pipeline disruptions forced it to suspend some shipments from Yanbu.