Oil Prices Rise as Trump Rejects Iran Sanctions Relief Reports

Oil prices rose on Wednesday as US President Donald Trump rejected reports that Washington was prepared to ease sanctions on Iran, while Qatar continued efforts to bring the two sides closer to negotiations.

Brent crude for November delivery, which expires on Wednesday, rose 71 cents, or 0.69 per cent, to $103.30 a barrel by 7:08 a.m. Saudi time. The more active December contract gained 35 cents to $96.51, while US West Texas Intermediate crude increased 43 cents, or 0.48 per cent, to $89.81.

Brent was on track for a monthly gain of about 14 per cent, which would be its strongest monthly increase since July. WTI was heading for a rise of around 4 per cent after briefly moving above $106 a barrel earlier in the month. Reuters reported that oil prices had fallen 2.5 per cent on Tuesday as traders focused on signs of recovering crude supplies from the Middle East.

The market has remained sensitive to developments surrounding the conflict and diplomatic efforts between Washington and Tehran. Qatar said it was continuing shuttle diplomacy between the United States and Iran in an attempt to establish common ground for negotiations.

Trump has denied reports that he was willing to provide Iran with sanctions relief and release frozen Iranian funds in exchange for steps by Tehran on its nuclear programme. The disagreement has added uncertainty to expectations for a possible diplomatic breakthrough.

At the same time, oil supplies from the Middle East have improved. Saudi Arabia resumed tanker loadings at its Red Sea port of Yanbu after restarting its East-West Pipeline, restoring an important route for crude exports.

Data from Kpler showed crude exports from major Middle Eastern producers reached 16.328 million barrels per day in September, the highest level since the conflict began in late February. However, exports remained about 3.2 million barrels per day below the February level of 19.513 million barrels per day.

The improving supply outlook has limited some of the upward pressure on prices, but traders remain concerned about the security of regional energy infrastructure and shipping routes.

In the United States, preliminary industry data indicated that crude and gasoline inventories increased last week while distillate stocks declined. Official figures from the US Energy Information Administration were due later on Wednesday.

US plans affecting diesel exports are also being monitored by traders. The Trump administration is considering allowing wider sales of red-dyed diesel as it seeks to ease fuel prices, while restrictions on diesel exports could influence refinery demand for crude.

The combination of recovering Middle Eastern supply and continued geopolitical uncertainty is keeping oil markets volatile as traders assess the prospects for diplomacy and the pace of the region’s export recovery.