Oil Prices Bounce on US-Iran Diplomatic Hopes
Oil prices rose for the first time in five sessions on Tuesday as investors anticipated developments on potential US-Iran talks at the United Nations General Assembly this week. The Brent crude futures November contract increased by $1.14, or 1.1%, to $101.48 a barrel at 0317 GMT.
The WTI October contract, which expires on Tuesday, climbed 87 cents, or 0.9%, to $96.65 a barrel. The more actively traded November contract was up 85 cents, or 0.9%, at $93.22 a barrel.
US President Donald Trump expressed willingness to meet Iranian President Masoud Pezeshkian, who is expected in New York this week for the UN meeting. However, analysts believe oil prices will remain range-bound and sensitive to headlines until there is clear progress or a setback in diplomatic efforts between the US and Iran.
Supply concerns eased as shipments through the Strait of Hormuz reached a six-month high, and Saudi Arabia worked to restore its East-West pipeline. Nevertheless, tensions remained elevated after Yemen's Iran-backed Houthis attacked Riyadh and a Saudi Aramco facility in Yanbu and stepped up efforts to cut off Saudi-backed forces from the Red Sea coast.