Oil Prices Surge on US-Iran Diplomatic Hopes
Oil prices rose for the first time in five sessions on Tuesday as investors awaited developments on potential US-Iran talks at the United Nations General Assembly this week. The Brent crude futures November contract increased by $1.14, or 1.1%, to $101.48 a barrel.
The WTI October contract, which expires on Tuesday, climbed 87 cents, or 0.9%, to $96.65 a barrel. Tim Waterer, chief market analyst at KCM Trade, said the move higher in oil prices 'has the appearance of a typical short-covering bounce after the recent decline.' He added that traders were taking some risk off the table while the diplomatic narrative played out.
The Iranian government has conveyed its conditions to mediators for re-engaging in negotiations, according to Al Jazeera. The Middle East tensions remained elevated as Yemen's Houthis attacked Riyadh and a Saudi Aramco facility in Yanbu, stepping up efforts to cut off Saudi-backed forces from the Red Sea coast.