Oil prices have risen as ongoing diplomatic tensions between the United States and Iran continue to overshadow the recovery of crude supplies from the Middle East. Brent crude futures for November increased by 0.6% to $103.16 a barrel, while the more active December contract saw a rise of 94 cents, reaching $97.10. Concurrently, U.S. West Texas Intermediate crude climbed by 0.9% to $90.20.
As the energy markets remain tight, Brent is projected to achieve a monthly gain of approximately 14%, with West Texas Intermediate expected to rise around 4%. The market’s focus is largely on the diplomatic efforts between Washington and Tehran, with Qatar expressing hope for progress. Despite reports, U.S. President Donald Trump has dismissed claims that Washington might consider offering sanctions relief or releasing frozen Iranian assets in exchange for Iran’s commitments on its nuclear program.
Meanwhile, crude supplies from the Gulf are showing signs of recovery. Saudi Arabia has resumed tanker loadings at Yanbu, a Red Sea port, after restarting its East-West Pipeline. However, analysts caution that persistent fuel shortages and high shipping costs may continue to strain energy markets.
Adding to the uncertainty, U.S. crude and gasoline inventories have increased over the past week, while distillate stocks have declined. This fluctuation in inventory levels contributes to the ongoing concerns regarding fuel supplies.