WTI remains above $92.00 due to market caution ahead of UN diplomatic talks
West Texas Intermediate (WTI) oil price halts its four-day losing streak, hovering around $92.40 per barrel during the European hours on Tuesday.
WTI oil price stops its four-day decline, trading near $92.40 per barrel on Tuesday. The surge in crude prices is attributed to traders remaining cautious about potential diplomatic talks between the United States and Iran at this week's United Nations General Assembly in New York. The focus is on US President Donald Trump, who is set to address the UN General Assembly and potentially meet Iranian President Masoud Pezeshkian.
Additionally, the Trump administration has proposed a $5 billion fund to aid in the repair of war-torn infrastructure in the Middle East. However, oil prices may face downside pressure as market anxiety subsides following successful energy supplies through the Strait of Hormuz. Saudi Arabia has been moving crude through the Strait at a rate of 2.9 million barrels per day over the past six days, with supertankers holding up to 14 million barrels docked at Gulf export terminals – the highest count since at least June.
Deutsche Bank strategists note that "markets have performed strongly over the last 24 hours," despite Brent crude briefly dropping below $100/bbl due to growing optimism about diplomatic progress in the Middle East.
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