Oil Prices Flat Amid US-Iran Peace Talks and Gulf Export Recovery
Oil prices were relatively unchanged in early Asia trade on Thursday after investors weighed the implications of US-Iran peace talks and the recovery of Gulf crude exports.
Brent crude futures rose by 12 cents to $98.15 a barrel, while US West Texas Intermediate crude was down 7 cents at $90.35 a barrel.
The slight movement in prices followed the previous day's gains, which saw Brent rise by about $1 a barrel and WTI increase by around 5% on the month, according to data from September.
Toshitaka Tazawa of Fujitomi Securities attributed the stabilization in oil prices to both buying and selling pressure. He noted that Saudi Arabia's resumption of exports from its Red Sea port of Yanbu was a key factor contributing to the recovery of Gulf oil exports, which Goldman Sachs estimates have rebounded to 23.3 million barrels per day.
The US-Iran peace talks remain a crucial aspect in determining the future direction of oil prices. Qatar expressed hope that shuttle diplomacy between Tehran and Washington could lead to a breakthrough, but US President Donald Trump denied reports that he was willing to grant Iran sanctions relief in exchange for concrete steps on its nuclear program.
OPEC+ countries are expected to maintain their oil production targets at the upcoming meeting on Sunday, two people with knowledge of the matter told Reuters. Meanwhile, US crude inventories rose by 922,000 barrels to 427.3 million barrels, while fuel inventories fell sharply due to strong seasonal and global demand.