Commodities
Trump Dents Oil Price Rally with Sanctions U-Turn
Oil prices rose on Wednesday after US President Donald Trump denied he would ease sanctions on Iran. The Brent futures November contract, which expires on Wednesday, was up 84 cents to $103.43 a barrel. This comes as Qatar pushed for peace talks between Tehran and Washington.
The US is considering allowing sales of red-dyed diesel instead of an export ban to offer price relief to consumers ahead of the November midterm elections. However, this move may create an oversupply in the US market and lead refiners there to process less crude.
According to Sugandha Sachdeva, founder of SS WealthStreet, continued uncertainty over sanctions relief and negotiations is keeping a geopolitical risk premium embedded in prices.