Key facts
- Oil prices steadied Wednesday as stalled US-Iran talks offset a recovery in crude supply.
- US President Donald Trump denied reports that he was willing to ease sanctions on Iran.
- Qatar pushed for peace talks between Iran and the US.
- Middle East crude oil exports rebounded in September to 16.328 million barrels per day.
Oil prices steadied on Wednesday, with Brent futures on track for a significant monthly gain as stalled US-Iran talks underpinned prices. Brent futures were down slightly while US West Texas Intermediate crude rose, with Brent headed for its biggest monthly gain since July.
US President Donald Trump denied reports that he was willing to ease sanctions on Iran, contradicting earlier hopes for talks. Qatar stated its hope that diplomatic efforts between Iran and the US could yield a breakthrough. Trump refuted an Axios report citing US officials who claimed he was willing to offer Iran sanctions relief and unfreeze its funds in exchange for concrete steps on its nuclear program.
The Brent futures November contract, which was expiring on Wednesday, rose 71 cents, or 0.69%, to $103.30 a barrel by 0408 GMT. The more active December contract gained 35 cents to $96.51. US West Texas Intermediate crude also saw gains, rising 43 cents, or 0.48%, to $89.81.
Brent is on track for a monthly gain of around 14%, its largest increase since July, while WTI is set for a 4% rise after previously exceeding $106 for the first time since May. The spread between the two benchmarks widened to its broadest in four months as traders monitored potential US plans to restrict diesel exports, which could lead to an oversupply in the domestic market and reduce crude processing by US refiners.
On Tuesday, Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu, following the restart of operations on its East-West Pipeline. Crude oil exports from Middle East producers rebounded in September to 16.328 million barrels per day, the highest level since the US-Israeli war with Iran began in late February. With flows through the Saudi East-West pipeline restored, regional exports are now only 11% below pre-war levels.
"Continued uncertainty over sanctions relief and negotiations is keeping a geopolitical risk premium embedded in prices," said Sugandha Sachdeva, founder of SS WealthStreet. "Improving supplies could cap further gains, but renewed disruption or an escalation in tensions could trigger another rally," she added.