Oil gains 3% as US-Iran peace talks stall
USO•Oil prices rose about 3% after President Donald Trump rejected Iran’s peace proposal, though he expects more talks this week. Brent reached $107.30 a barrel and WTI $95.22.
1. Prices rise on talks
Brent futures gained $2.98, or 2.86%, to $107.30 a barrel by 1206 GMT, after reaching their highest since September 15 earlier in the session. West Texas Intermediate rose $2.81, or 3.04%, to $95.22.
2. Exports and supply risks
Preliminary data showed crude exports from key Middle East producers rebounded to 12.8 million barrels per day in September, the highest since the war started in February. Shipments through the Strait of Hormuz were set to reach about 7.4 million barrels per day this month. An economist cited in the article said increased flows were easing some upward price pressure, while the oil market remained in deficit.
3. Diesel market concerns
Brent rose 0.4% last week, while WTI fell more than 7% amid concerns the United States may ban diesel exports. The article said European low-sulphur gasoil’s premium to Brent hit a record of about $95 a barrel last week.
