Oil steadies as stalled US-Iran talks offset supply recovery
Brent was down 0.2% at $102.43 a barrel and headed for a monthly gain of around 13%, its biggest since July. Goldman Sachs estimated Gulf oil exports recovered to 23.3 million barrels per day over the last week.
3 million barrels per day over last week White House urges EU to draw down emergency diesel inventories, two sources say (Updates prices, adds analyst comment, changes dateline to LONDON) By Ahmad Ghaddar LONDON, Sept 30 (Reuters) — Oil prices steadied on Wednesday but remained on track for a big monthly gain as US-Iran talks aimed at ending their war stalled, while tight fuel markets continued to underpin prices despite recovering Middle East crude supplies. 43 a barrel at 0811 GMT. 98. 40.
Brent is headed for a monthly gain of around 13%, its biggest since July, while WTI is on track for a 4% rise. The spread between the two benchmarks also expanded to its widest in four months as traders monitored potential plans by the US to restrict diesel exports, which could create an oversupply in the US market and lead refiners there to process less crude. Qatar said on Tuesday it hopes that shuttle diplomacy between Tehran and Washington can lead to a breakthrough.
However, US President Donald 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 "concrete" steps by Tehran on its nuclear programme. On Tuesday, Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on its East-West Pipeline. 3 million barrels per day over the last week, in line with their 2025 average, as exports doubled in September, it said in a note on Tuesday. 5 million bpd, or 89% of 2025 levels, JPMorgan estimated.
"Recovering crude flows should temper supply-driven price pressures, although persistent product shortages and elevated freight costs are likely to keep the broader energy market tight," analysts at Japanese bank MUFG said. The White House has urged the European Union to draw down emergency diesel inventories in an effort to lower global prices, according to two sources familiar with the effort. Trump is considering allowing sales of red-dyed diesel, instead of an export ban, to offer some price relief to consumers ahead of the November midterm elections.
In the US, crude oil and gasoline inventories rose while distillate stocks fell last week, market sources said on Tuesday, citing American Petroleum Institute data. m. EDT (1430 GMT). Analysts polled expect crude and product inventories to have fallen.
(Additional reporting by Mohi Narayan in New Delhi and Helen Clark in Perth. Editing by Sonali Paul. com;)