Key facts
- Oil prices eased from session highs as Qatari mediators prepared to hold talks with the US and Iran.
- US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz.
- Brent crude futures settled up 96 cents at $105.28 a barrel.
- US West Texas Intermediate (WTI) crude settled up 19 cents at $92.60 a barrel.
- Middle East crude oil exports rebounded in September to 12.8 million bpd, the highest since the war began.
Oil prices settled slightly higher on worries about ongoing supply disruptions as Qatari mediators prepared to hold talks with the US and Iran to find a peace deal. Brent futures settled up 96 cents at $105.28 a barrel, while US West Texas Intermediate (WTI) crude rose 19 cents to settle at $92.60.
Earlier in the session, prices had surged by more than $4 a barrel after US President Donald Trump rejected a peace deal from Iran that would reopen the Strait of Hormuz. Trump told Axios in a phone interview on Sunday that he expected US negotiators to engage in more talks this week, stating Tehran "overplayed their hand".
Qatari mediators are expected to hold separate talks with Iranian Foreign Minister Abbas Araqchi in New York and with the US side on Monday or Tuesday, an official briefed on the negotiations told Reuters. The talks are expected to focus on an amended version of a seven-day proposal that Iran presented last week on the sidelines of the United Nations General Assembly.
Saudi Foreign Minister Prince Faisal bin Farhan arrived in Washington on Monday for talks with US Secretary of State Marco Rubio, amid escalating hostilities between Riyadh and Yemen's Iran-backed Houthis.
Crude oil exports from key Middle East producers rebounded in September to 12.8 million bpd, the highest since the war started in February, preliminary data from Kpler showed on Monday, as Saudi Arabia and the United Arab Emirates boosted exports. The rebound came after a recovery in shipments via the Strait of Hormuz, which were set to hit about 7.4 million bpd this month, the data showed. Saudi Arabia diverted exports from the Red Sea port of Yanbu to its eastern Ras Tanura port following attacks that damaged its East-West pipeline.
"Despite more vessel traffic through the Strait of Hormuz, flows remain below pre-conflict levels, keeping the market undersupplied," UBS analyst Giovanni Staunovo said. About a fifth of the world's oil supply — roughly 20 million barrels per day — passed through the Strait of Hormuz before the US and Israel attacked Iran in February.
Saudi Aramco is considering offering discounts on its official selling prices for oil loaded off Oman to compensate buyers for record freight rates, five people familiar with the matter said.