Oil Prices Top $100 as US-Iran Talks Stall
International oil prices have surged to over $100 a barrel due to concerns over stalled US-Iran peace talks and tightening fuel markets in the United States. The Brent November futures contract, which expired on Wednesday, increased by about 1% to close at $103.53 a barrel.
This marks a monthly gain of around 14%, its biggest since July. The rise in prices is attributed to a combination of factors, including geopolitical supply disruptions, strong export demand, and the release of strategic reserves.
The US Energy Information Administration reported that both petrol and distillate fuel oil inventories fell last week, putting downward pressure on supplies. This comes as countries around the world call on the US to fill the gap in oil and petroleum product supply caused by the war in Ukraine and Iran.
Despite recovering Gulf crude shipments, global inventories remain depleted, and refined products such as diesel are still in short supply. This could lead to sustained elevated energy prices even as more crude reaches the market.