Oil prices rise by about US$1/bbl on stalled US-Iran talks and tight fuel markets
Brent recorded a monthly gain of around 14%, its biggest since July
Oil prices climbed approximately US$1 per barrel on Wednesday due to ongoing US-Iran negotiations and constrained fuel markets. The Brent November futures contract rose 0.9% to $103.50 per barrel, while the December contract increased 1.9% to $98.03. US West Texas Intermediate crude settled at $90.42, up 1.2%. Brent's monthly gain of 14% was the largest since July, with WTI increasing 5% on the month.
Qatar expressed optimism that shuttle diplomacy between Tehran and Washington could result in progress, but US President Donald Trump dismissed claims he would offer sanctions relief to Iran for nuclear concessions. Saudi Arabia restarted oil tanker loading at its Red Sea port of Yanbu after reviving East-West Pipeline operations.
Gulf oil exports recovered to 23.3 million barrels per day over the past week, matching their 2025 average. OPEC+ is expected to keep production levels steady for November when they meet on Sunday. The White House encouraged the EU to reduce emergency diesel stocks to lower global prices. US fuel inventories fell, while crude stocks increased.
US petrol inventories dropped 1.7 million barrels to 204.4 million barrels, and distillate stocks declined 2.3 million barrels to 105.2 million barrels. US crude inventories rose by 922,000 barrels to 427.3 million barrels in the week ending Sep 25, surpassing analysts' expectations for a 264,000-barrel draw. The price gap between the two crude oil benchmarks widened to its widest in four months as traders watched for potential US restrictions on diesel exports, which could create an oversupply and reduce processing at US refiners.
US economic data indicated inflation increased less than expected in August, potentially reducing the Federal Reserve's need to raise interest rates again in October.
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