Oil Prices Edge Higher Amid US-Iran Stalemate

Oil prices ticked higher on Tuesday despite a lack of concrete progress in US-Iran talks to ease supply fears. The West Texas Intermediate futures settled at below $93 a barrel after rising by as much as 4.5% during the session.

US President Donald Trump is willing to give Iran sanctions relief and release frozen funds for concrete progress on the nuclear issue, according to a US official. However, Iranian officials have privately expressed pessimism about reaching a deal before the US midterm elections in November.

The market is increasingly worried about escalation via Iran or the Houthis prior to midterm elections, or from the US post midterms, said Ryan McKay, senior commodity strategist at TD Securities. Without a concrete deal or conclusion to the conflict, the market is quickly fading initial headline reactions and higher prices are becoming harder to shake.

The fundamental outlook for oil is turning increasingly bullish, despite resumed negotiations. Key gauges of supply tightness have spiked in recent days, a sign of a clamour for barrels that can be delivered quickly. Brent is up over 75% this year and oil products continue to soar even higher.