US-Iran Diplomacy Eases Oil Supply Concerns Amid Hormuz Uncertainty

Oil prices are expected to remain volatile this week as diplomatic efforts between the US and Iran ease some supply concerns, while uncertainty over the reopening of the Strait of Hormuz keeps regional security risks in focus.

The Brent crude futures for November delivery traded at $105.36 per barrel on Friday, up 1.4% from last Friday's close of $103.87, while West Texas Intermediate (WTI) crude futures for November delivery traded at $92.86 per barrel, down around 3.4% from $96.08 a week earlier.

Renewed efforts to resume US-Iran talks and a recovery in Saudi crude exports helped ease some supply concerns early in the week, with Qatar mediating between the two sides and preliminary data showing Saudi crude exports had risen to over 4 million barrels per day in September, from 2.4 million barrels per day in August.

However, market attention shifted on Tuesday as disruptions to Saudi oil exports and renewed fighting in Yemen raised concerns over regional supply routes, adding to fears that further disruptions could put additional pressure on energy flows from the Middle East.