Oil prices rise by about USD1/bbl
NEW YORK: Oil prices rose by about USD1 a barrel on Wednesday, and logged steep monthly gains, on stalled US-Iran peace talks and tightening US fuel markets. The Brent November futures contract, which expires on Wednesday, settled up 91 cents, or 0.9 percent, at USD103.50 a barrel. The more active December contract was up USD1.87, or 1.9 percent, at USD98.03. US West Texas Intermediate crude…
Oil prices surged roughly $1 per barrel on Wednesday, driven by stagnant US-Iran peace negotiations and constrained US fuel markets. The Brent November futures contract surged 91 cents, or 0.9%, to $103.50 a barrel, while the December contract rose 1.87 dollars, or 1.9%, to $98.03. West Texas Intermediate crude settled at $90.42, up 1.04 dollars, or 1.2%.
Brent's monthly gain of nearly 14% marked its highest since July, while WTI increased about 5% on the month. Qatar expressed hope that shuttle diplomacy between Tehran and Washington could yield a breakthrough, but US President Donald Trump dismissed reports of potential sanctions relief and frozen Iranian funds for "concrete" nuclear program steps.
Saudi Arabia restarted oil tanker loadings from its Red Sea port of Yanbu, and exports recovered to 23.3 million barrels per day over the past week, aligning with their 2025 average. Over the past five days, the 10-day average for total oil exports stood at 20.5 million bpd, or 89% of 2025 levels. OPEC+ oil-producing nations likely kept their November production targets steady, according to two knowledgeable sources.
The White House urged the European Union to lower diesel inventories to ease global prices, despite rising crude stocks and gasoline inventories falling by 1.7 million and 2.3 million barrels, respectively. Analysts noted that refining activity was decreasing, contributing to product shortages and elevated freight costs. US gasoline inventories fell by 1.7 million barrels to 204.4 million barrels, while distillate stockpiles decreased by 2.3 million barrels to 105.2 million barrels.
The gap between two crude oil benchmarks widened to its widest in four months as traders monitored potential US restrictions on diesel exports, which could lead to oversupply and reduced processing in the US market. President Trump considered allowing sales of red-dyed diesel to provide price relief ahead of the November midterm elections, while US economic data showed inflation rose less than expected in August, potentially reducing the Federal Reserve's urgency to raise interest rates further in October.
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