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NEW DELHI: Oil prices rose on Wednesday after US President Donald Trump denied he would be willing to \u200cease sanctions on Iran while Qatar pushed for peace talks, after falling in the previous session on a recovery in crude supply from the Middle East.<\/p>\n
The Brent futures November contract, which is expiring on Wednesday, rose 71 cents, or 0.69 percent, to $103.30 a barrel by 07:08 a.m. Saudi time. The \u200bmore active December contract rose 35 cents to $96.51. US West Texas Intermediate crude gained 43 cents, or 0.48 percent, \u200bto $89.81.<\/p>\n
Brent is headed for a monthly gain of around 14 percent, its biggest climb since July, \u2060while WTI is on track for a 4 percent rise after having breached $106 for the first time since May.<\/p>\n
The spread between \u200bthe two benchmarks this month also expanded to its widest<\/u> in four months as traders watched potential plans by the US \u200bto restrict diesel exports, which could create an oversupply in the domestic market and lead US refiners to process less crude.<\/p>\n
US President Donald Trump is considering<\/u> allowing sales of red-dyed diesel, instead of an export ban, to offer some price relief to consumers as the November midterm elections \u200bloom.<\/p>\n
\u201cContinued uncertainty over sanctions relief and negotiations is keeping a geopolitical risk premium embedded in prices,\u201d said Sugandha Sachdeva, founder \u200bof SS WealthStreet, a New Delhi-based research firm.<\/p>\n
\u201cImproving supplies could cap further gains, but renewed disruption or an escalation in tensions could \u200ctrigger another \u2060rally,\u201d she added.<\/p>\n
Qatar said on Tuesday it hopes that shuttle diplomacy<\/u> between Iran and the US can lead to a breakthrough.<\/p>\n
However, Trump denied an Axios report that cited US officials as saying he was willing to give Iran sanctions relief and release frozen Iranian funds in return for \u201cconcrete\u201d steps by Tehran on its nuclear programme.<\/p>\n
On Tuesday Saudi Arabia resumed oil tanker loadings<\/u> from \u200bits Red Sea port of \u200bYanbu after restarting operations on \u2060the East-West Pipeline.<\/p>\n
Crude oil exports from Middle East producers have rebounded in September to 16.328 million barrels per day, the highest<\/u> since the US-Israeli war with Iran started in late February.<\/p>\n
\u201cWith \u200bflows through the Saudi East-West pipeline restored, regional exports are now just 11 percent below pre-war \u200blevels \u2014 a remarkable \u2060recovery for a region still at war,\u201d JP Morgan research said in a note.<\/p>\n
Over the past five days, the 10-day average for total oil exports has held at 20.5 million barrels per day, or 89 percent of 2025 levels, J.P. Morgan estimated.<\/p>\n
In the \u2060US, crude \u200boil and gasoline inventories rose, while distillate stocks fell last week, market sources \u200bsaid on Tuesday, citing data from the American Petroleum Institute.<\/p>\n
Official inventory data from the US Energy Information Administration is due at 05:30 p.m. Saudi time. \u200bAnalysts polled by Reuters expect crude and product inventories to have fallen.<\/p>\n<\/div>\n