Oil prices have risen due to stalled US-Iran negotiations and tight fuel markets, despite signs of recovering crude oil supplies from the Middle East. Brent crude futures for November, closing today, increased by 0.6% to $103.16 a barrel, while the more active December contract saw a rise of 94 cents to $97.10. Meanwhile, US West Texas Intermediate crude climbed 0.9% to $90.20.
Brent is anticipated to achieve a monthly gain of approximately 14%, with WTI expected to rise around 4%. Diplomatic efforts between Washington and Tehran remain a focal point for markets, as Qatar expresses optimism about potential progress. However, US President Donald Trump has dismissed reports of potential sanctions relief or the release of frozen Iranian funds in exchange for commitments on Iran’s nuclear program.
In the Gulf region, oil supplies are showing signs of recovery, with Saudi Arabia resuming tanker loadings at the Red Sea port of Yanbu following the restart of its East-West Pipeline. Despite this, analysts caution that ongoing fuel shortages and elevated shipping costs may continue to keep energy markets tight.
Adding to the market’s uncertainty, US crude and gasoline inventories experienced an increase last week, while distillate stocks saw a decline. These factors contribute to the ongoing volatility and concerns over fuel supplies.