Noida, Sep 29 (APAC Media): Oil prices extended their gains on Tuesday as a lack of progress in US-Iran diplomatic efforts continued to fuel concerns over potential disruptions to Middle Eastern supplies, despite signs of a recovery in regional crude exports.
Brent crude futures for November delivery rose 2.15% to $100.20 a barrel, while West Texas Intermediate (WTI) futures climbed 1.8% to $94.30. Brent had approached $108 a barrel in the previous session before surrendering some of its gains to settle at about $105.
Qatari mediators were expected to hold separate discussions with Iranian Foreign Minister Abbas Araqchi and US officials, with talks centred on an amended seven-day proposal submitted by Iran last week, News Agency reported on Monday.
However, the two sides remained pessimistic about securing an agreement before the US midterm elections, according to the report, leaving markets focused on the possibility of further disruption to oil supplies.
The diplomatic uncertainty has outweighed evidence that physical crude flows are recovering. Preliminary data from Kpler showed exports from major Middle Eastern producers reached 12.8 million barrels per day in September, their highest level since February.
Saudi Arabia and the United Arab Emirates accounted for much of the increase. Saudi crude exports through the Strait of Hormuz were expected to rise sharply this month after Riyadh diverted shipments from the Red Sea port of Yanbu following damage to its East-West pipeline.
The pipeline has since been repaired, and exports from Yanbu resumed, restoring a major route that allows Saudi oil to bypass the Strait of Hormuz. The pipeline can carry up to 7 million barrels per day, while around 3.5 million bpd was flowing after operations restarted, the Wall Street Journal reported.
Yet the recovery in exports has done little to eliminate market concerns, with the movement of crude around the Gulf remaining costly and logistically challenging.
The disruption has also tightened refined-product markets, particularly diesel. Record diesel prices have prompted the White House to consider regulatory changes that could widen the availability of red-dyed diesel, Reuters reported.
Speculation over potential US restrictions on diesel exports has also contributed to a wider Brent-WTI spread.
New Zealand Foreign Minister Winston Peters highlighted the wider economic impact of the energy disruption, saying the country’s latest Pre-election Economic and Fiscal Update showed the economy had successfully turned around despite significant international pressures.
Writing on X, Peters cited “a high level of inflation from tariff changes, the war in Iran, and restricted oil supplies through the Strait of Hormuz†as major challenges. He said New Zealand was navigating “the most insecure times internationally for eighty yearsâ€.
Peters added that “real experience will be critical†and called for greater ambition to double the size of New Zealand’s economy by 2050. Without such growth, he warned, “the plethora of political promises will remain just meaningless words.”
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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