Crude Oil Prices Surge Amid Stalled US-Iran Talks and Tight Fuel Markets

Crude oil prices rose as stalled US-Iran talks and tight fuel markets continued to support prices, despite recovering Middle East crude supplies. The spread between Brent and WTI widened to its highest level in four months, with markets monitoring potential US restrictions on diesel exports. This could increase domestic fuel availability and encourage refiners to reduce crude processing.

Qatar expressed hope for a diplomatic breakthrough between Tehran and Washington, but US President Donald Trump denied reports of considering sanctions relief and releasing frozen Iranian funds in exchange for nuclear commitments.

Saudi Arabia resumed oil tanker loadings from Yanbu after restarting its East-West Pipeline. Goldman Sachs estimated Gulf oil exports recovered to 23.3 million barrels per day over the past week, while JPMorgan put the 10-day average at 20.5 million bpd, or 89% of 2025 levels.

US crude inventories increased by 922,000 barrels to 427.3 million barrels in the week ended September 25, against expectations for a 264,000-barrel draw. Refinery runs declined 554,000 bpd and utilization fell to 92.5%. Gasoline inventories dropped 1.7 million barrels, while distillate stocks declined 2.3 million barrels.