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

Oil prices climbed on Wednesday following US President Donald Trump's denial of easing sanctions on Iran, while Qatar advocated for peace talks. Brent futures for November, expiring on the same day, increased by 71 cents, or 0.69%, to $103.30 a barrel. The more active December contract rose 35 cents to $96.51 a barrel. West Texas Intermediate crude also gained 43 cents, or 0.48%, to $89.81 a barrel.

Brent is on track for a 14% monthly gain, the largest since July, while WTI is set for a 4% rise, after breaching $106 for the first time since May. The price gap between the two benchmarks widened to its widest in four months due to traders' interest in potential US restrictions on diesel exports, which could lead to an oversupply in the domestic market and reduce crude processing by US refiners.

The US President is considering allowing sales of red-dyed diesel to provide some relief to consumers as the November midterm elections approach. Analyst Sugandha Sachdeva noted that ongoing uncertainty over sanctions relief and negotiations continues to embed a geopolitical risk premium in prices. She added that improving supplies might cap further gains, but renewed disruptions or an escalation in tensions could trigger another rally.