Oil Prices Rise as Markets Watch Potential US-Iran Talks
Oil prices moved higher on Tuesday after falling for four consecutive sessions, as investors monitored the possibility of talks between the United States and Iran during the United Nations General Assembly this week.
Brent crude futures for the November contract increased by $1.14, or 1.1%, to $101.48 per barrel at 0317 GMT.
US West Texas Intermediate (WTI) crude for October delivery, which expires on Tuesday, gained 87 cents, or 0.9%, to reach $96.65 per barrel.
The more actively traded November WTI contract rose 85 cents, or 0.9%, to $93.22 per barrel.
Markets Await US-Iran Developments
Investors are closely watching diplomatic developments between Washington and Tehran.
US President Donald Trump has indicated that he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly in New York this week.
Market analyst Tim Waterer said the latest rise appeared to be linked mainly to traders covering short positions after the recent decline in oil prices.
He added that prices could remain sensitive to headlines until there is clearer progress or a setback in US-Iran diplomatic efforts.
Strait of Hormuz Supply Concerns Ease
Oil supply concerns have eased somewhat after more crude shipments moved through the Strait of Hormuz over the weekend.
Saudi Aramco has increased crude exports through the waterway after attacks on its East-West Pipeline disrupted some shipments through the Red Sea port of Yanbu.
Tanker tracking data showed that around 14 million barrels of Saudi crude were loaded onto seven supertankers in the Gulf on Sunday.
Analysts at Saxo Bank said shipments through the Strait of Hormuz had reached a six-month high, while Saudi Arabia was working to restore its East-West pipeline.
Despite the improvement in supply flows, oil market volatility remains elevated.
Middle East Tensions Remain
Regional tensions continue to influence the oil market.
Yemen’s Houthis have claimed attacks targeting Riyadh and a Saudi Aramco facility in Yanbu, while tensions involving Saudi-backed forces and the Red Sea region remain a concern for energy markets.
According to Iranian sources cited in the report, China has also urged Tehran to help reduce Houthi attacks following an increase in the group’s military activity.
Libya Pipeline Disruption
Oil markets are also monitoring developments in Libya.
An armed group closed a valve on the Sharara crude pipeline leading towards the Zawiya port on Monday, causing a significant drop in production at the Sharara oilfield, according to Libya’s National Oil Corporation.
With developments in the Middle East and Libya affecting supply expectations, traders are expected to remain focused on diplomatic developments and crude shipments in the coming days.
