Oil Prices Rise as Trump Rejects Iran Sanctions Relief
SINGAPORE — WEB DESK: Oil prices moved higher on Wednesday after US President Donald Trump denied reports that he was prepared to ease sanctions on Iran, renewing uncertainty over Washington’s position as diplomatic efforts continue between the two countries.
Brent crude futures for November, which expire on Wednesday, gained 71 cents, or 0.69%, to $103.30 a barrel. The more actively traded December contract also advanced, reaching $96.51 a barrel.
US West Texas Intermediate crude rose to around $89.81 a barrel, as traders assessed the prospects for US-Iran diplomacy alongside continuing concerns over Middle East energy supplies.
Trump rejected suggestions that Washington had offered sanctions relief to Tehran in exchange for Iranian concessions over its nuclear programme.
The comments reduced expectations that an easing of US sanctions could quickly bring additional Iranian oil supplies into international markets.
Oil markets have remained highly sensitive to developments involving Iran because of the country’s role as a major energy producer and the importance of the Strait of Hormuz to global oil shipments.
Despite Wednesday’s gains, signs of recovering Middle East supplies have provided some relief to the market. Saudi Arabia has resumed tanker loadings from Yanbu, while regional crude exports have increased from levels seen earlier in the conflict.
Brent remains on course for a monthly increase of around 14%, while WTI is heading for a gain of approximately 4%, reflecting the significant geopolitical risk premium that has built up during the month.
Traders are also monitoring US petroleum inventories. Industry figures indicated increases in crude oil and gasoline stocks, while distillate inventories declined.
Attention remains focused on diplomatic efforts involving Washington and Tehran. Qatar has been relaying messages between the two sides in an effort to narrow differences and prevent further escalation.
With no comprehensive settlement announced, energy markets are likely to remain sensitive to developments involving sanctions, Middle East supply flows and the wider US-Iran confrontation.
