Oil Prices Soar on Stalled US-Iran Talks and Tight Fuel Markets

Oil prices rose on Wednesday due to stalled US-Iran peace talks and tight fuel markets. The Brent November futures contract settled at $103.50 a barrel, up 91 cents or 0.9%, while the December contract was up $1.87 or 1.9% at $98.03.

The rise in oil prices comes as Qatar expressed hope that shuttle diplomacy between Tehran and Washington could lead to a breakthrough, but US President Donald Trump denied reports of offering sanctions relief to Iran in exchange for concrete steps on its nuclear program.

Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on its East-West Pipeline. Goldman Sachs estimates Gulf oil exports have recovered to 23.3 million barrels per day, while Opec+ oil-producing countries are likely to keep their production targets steady for November.

The White House has urged the European Union to draw down emergency diesel inventories in an effort to lower global prices, according to two people familiar with the effort. Shrinking US fuel inventories supported oil prices, even as crude stocks grew.