Oil Prices Rebound on US-Iran Talks Hopes and Saudi Supply Boost
Oil prices rose on Tuesday as investors focused on the possibility of fresh US-Iran talks at the United Nations General Assembly. The Brent crude futures contract recovered some losses, gaining 1.3% to $101.59 per barrel, while West Texas Intermediate (WTI) crude futures rose 0.7% to $96.45 per barrel.
The recent declines in oil prices were driven by a combination of factors, including persistent Middle East tensions and concerns over supply disruptions. However, the market remains vulnerable to renewed disruptions, with Iran-aligned Houthis battling Saudi-backed forces for control of critical areas of Yemen.
Saudi Arabia has reportedly increased crude shipments through the Strait of Hormuz after disruptions to its key east-west pipeline. The country's oil flows through Hormuz averaged about 2.9 million barrels per day over the past six days, up sharply from August.