Oil prices have risen as ongoing diplomatic tensions between the United States and Iran, combined with tight fuel markets, overshadow signs of recovering crude supplies from the Middle East. Brent crude futures for November, set to expire today, climbed 0.6% to $103.16 per barrel, while the more active December contract increased by 94 cents to reach $97.10. Meanwhile, US West Texas Intermediate crude saw a 0.9% rise, hitting $90.20.
This increase in oil prices comes despite signs of supply recovery in the Gulf region. Saudi Arabia has resumed tanker loadings at the Red Sea port of Yanbu following the restart of its East-West Pipeline. However, analysts remain cautious as persistent fuel shortages and high shipping costs continue to strain energy markets.
In the backdrop, diplomatic efforts between Washington and Tehran remain a focus, with Qatar expressing optimism that ongoing negotiations might yield progress. Nonetheless, US President Donald Trump has denied reports suggesting that Washington is contemplating easing sanctions or releasing frozen Iranian assets in exchange for commitments from Iran regarding its nuclear program.
Adding to the complexity, US crude and gasoline inventories reported an increase last week, while distillate stocks saw a decline, contributing to the overall uncertainty about fuel supplies. Brent crude is projected to achieve a monthly gain of approximately 14%, while West Texas Intermediate is expected to rise by around 4%.