Oil climbs after Trump denies he is willing to ease sanctions on Iran

Oil prices climbed on Wednesday following US President Donald Trump's assertion that he would not ease sanctions on Iran, as Qatar sought to broker peace talks. Brent crude futures soared $1.14, or 1.11%, to $103.73 a barrel by 0131 GMT, while US West Texas Intermediate crude increased 34 cents, or 0.38%, to $89.72. Brent is poised for a monthly rise of approximately 14%, its steepest gain since July, and WTI is on track for a 4% increase after surging past $106 for the first time since May.

The disparity between the two benchmarks expanded to its widest in four months as traders monitored potential US plans to restrict diesel exports, which could generate an oversupply in the domestic market and compel US refiners to process less crude.

Saul Kavonic, head of energy research at MST Marquee, noted that the situation remained volatile, with oil logistics expensive and constrained. Qatar expressed hope that shuttle diplomacy between Iran and the US could lead to a breakthrough, stating that they were exchanging messages and striving for a common ground to prevent the repercussions of conflict.

However, Trump dismissed an Axios report citing US officials as saying he was willing to offer sanctions relief and release frozen Iranian funds in exchange for tangible steps from Tehran on its nuclear program. Trump tweeted on Truth Social, "This is untrue. I offered them NOTHING."

Saudi Arabia resumed loading oil tankers from its Red Sea port of Yanbu on Tuesday after restarting operations on the East-West Pipeline. Crude oil exports from Middle East producers surged in September to 16.328 million barrels per day, the highest level since the US-Israeli war with Iran erupted in late February. US crude oil and gasoline inventories rose, while distillate stocks fell last week, according to market sources citing data from the American Petroleum Institute.

Crude stocks increased by 1.02 million barrels in the week ending September 25, sources reported. Official inventory data from the US Energy Information Administration is scheduled for release at 10:30 a.m. EDT (1430 GMT), with analysts polled by Reuters anticipating crude and product inventories to have declined.