Oil Prices Remain Steady as Region's Supply Recovery Weighs Against Ongoing Concerns

Oil prices remained relatively stable on Thursday, following a 1.2% gain in the previous session, as investors assessed whether the recovery in West Asian crude supply could outweigh ongoing concerns over the region.

Brent crude was trading near $98 a barrel after touching $104 during Wednesday's intraday trade, while West Texas Intermediate (WTI) for November delivery fell 0.4% to $90.07 a barrel.

Wall Street analysts and traders said crude flows from West Asia were nearing pre-war levels, although fuel supplies had recovered at a slower pace. Qatar expressed hope that shuttle diplomacy between Tehran and Washington could result in a breakthrough, while Iranian officials stated that Tehran had received Washington's official response to its latest proposal aimed at ending the seven-month war.

Goldman Sachs outlined a scenario in which oil prices could rise as high as $120 a barrel if attacks on vessels in the Middle East intensify. If exports return to normal, the bank expects oil prices to move back towards $80 a barrel, citing supply shocks in gas and fuels as larger than those in the crude market.