Oil Rises After Trump Denies Easing Sanctions on Iran - Sarmad

Oil prices rose on Wednesday after U.S. President Donald Trump denied readiness to ease sanctions on Iran, while Qatar continued diplomatic efforts in hopes of achieving a breakthrough, following a decline in the previous session due to the recovery of supplies from the Middle East.

Brent crude futures rose by $1.14, or 1.11 percent, to $103.73 per barrel by 01:31 GMT. U.S. West Texas Intermediate crude rose by 34 cents, or 0.38 percent, to $89.72 per barrel.

Brent crude is on track to post monthly gains of around 14 percent, its largest rise since July, while U.S. crude is set to record a 4 percent increase after surpassing $106 for the first time since May.

The spread between the two benchmark crudes also widened this month to its widest level in four months, as traders monitored potential U.S. plans to restrict diesel exports, which could lead to a surplus in the domestic market and prompt U.S. refiners to reduce crude processing.

Trump is considering allowing the sale of red-dyed diesel, rather than imposing an export ban, to ease some price pressure on consumers as the midterm elections in November approach.

Sol Kafonek, head of energy research at MSCI Markets, said, “As more evidence emerges of recovering flows through the Strait of Hormuz, hopes will grow for finding alternatives to restricting U.S. diesel exports. Additionally, the lack of any tangible Iranian escalation over the past 24 hours has led to a slight decline in prices.”

He added that the situation “remains volatile, with logistics costs for oil services being high and constrained.”