Oil Prices Rebound on US-Iran Talks Hopes, Saudi Crude Flows

Oil prices rebounded on Tuesday as investors focused on potential US-Iran talks at the UN General Assembly, which could help de-escalate Middle East tensions. The Brent crude futures expiring in November rose 1.3% to $101.59 per barrel, while WTI crude futures gained 0.7% to $96.45 per barrel.

The prices had fallen for four consecutive sessions, posting their lowest closing levels since September 9. However, analysts at ING noted that persistent Middle East tensions continued to support risk premiums, contributing to the rebound in oil prices.

Saudi Arabia has reportedly increased crude shipments through the Strait of Hormuz after disruptions to its key east-west pipeline. Saudi oil flows through Hormuz averaged about 2.9 million barrels per day over the past six days, up sharply from August, according to satellite data cited by Reuters.