Oil prices settle down 2.5pc

Oil prices retreated 2.5 percent on Tuesday as investors focused on indications of increased crude exports from the Middle East, despite concerns about potential supply disruptions stemming from the US-Israeli conflict with Iran. Brent crude futures fell to USD102.59 per barrel, a 2.6 percent decline, while US West Texas Intermediate crude dropped to USD89.38, down 3.5 percent.

Analysts noted that Brent crude was on track for a monthly gain of approximately 13 percent, while WTI was projected to rise around 4 percent. The resumption of oil tanker loadings from Saudi Arabia's Red Sea port of Yanbu, following the restart of the East-West Pipeline, boosted the outlook for Middle Eastern oil exports. Saudi Arabia has exported 16.328 million barrels of crude oil per day in September, the highest level since the US-Israeli war on Iran began in late February, according to Kpler data.

US President Donald Trump has offered no concessions to Iran to end the war, rejecting reports that suggested he would ease sanctions and release frozen funds for nuclear program-related steps. Meanwhile, diesel futures in Europe edged lower while US futures rose 2.6 percent. The White House has called on the European Union to utilize its diesel emergency reserves to help stabilize global prices, as some EU countries have not fully released the oil and refined products they committed to, according to White House sources.

Trump is contemplating regulatory reforms that could permit broader sales of red-dyed diesel to help alleviate high fuel prices, a potential alternative to a diesel export ban. US crude oil and gasoline stockpiles were projected to have declined last week, while distillate inventories remained stable, according to a preliminary Reuters survey.