Oil stays above $103 after Trump denies easing sanctions on Iran

Oil prices surged on Wednesday after US President Donald Trump rejected the possibility of easing sanctions on Iran, while Qatar pushed for peace negotiations. Brent crude futures climbed $1.14, or 1.11%, to $103.73 a barrel, while US West Texas Intermediate crude rose 34 cents, or 0.38%, to $89.72. Brent is on track for a 14% monthly increase, its largest gain since July, with WTI set for a 4% rise after breaching the $106 mark for the first time since May.

The spread between the two benchmarks expanded to its widest in four months as traders monitored potential US plans to restrict diesel exports, which could cause an oversupply in the domestic market and reduce crude processing by US refiners. Trump denied reports that he was willing to provide sanctions relief and release frozen Iranian funds in exchange for specific actions from Tehran on its nuclear program.

Qatar expressed hope that shuttle diplomacy between Iran and the US could result in a breakthrough, as Middle East producers resumed oil exports, with crude stocks increasing by 1.02 million barrels in the week ending September 25.