Oil gains after Trump denies he is willing to ease Iran sanctions
USO•Oil prices rose after Donald Trump denied he was willing to ease sanctions on Iran. Brent’s November contract gained 0.82% to $103.43 a barrel, while WTI rose 0.28% to $89.63.
1. Prices rise on sanctions stance
Brent’s November futures contract rose 84 cents to $103.43 a barrel by 0650 GMT, while the more active December contract gained 19 cents to $87.59. US West Texas Intermediate crude added 25 cents to $89.63. Brent was on track for a monthly rise of around 14%, while WTI was headed for a 4% gain.
2. Iran talks and supply
Trump denied a report that he was willing to offer Iran sanctions relief and release frozen Iranian funds in return for concrete steps on its nuclear programme. Qatar said it hoped shuttle diplomacy between Tehran and Washington could lead to a breakthrough. Middle East crude exports rebounded to 16.328 million barrels per day in September, their highest since the Iran war began on February 28.
3. US diesel and inventories
The spread between Brent and WTI widened to its largest in four months as traders watched possible US restrictions on diesel exports. Trump is considering allowing sales of red-dyed diesel instead of an export ban. US crude and gasoline inventories rose last week while distillate stocks fell, according to market sources citing American Petroleum Institute data; official US inventory figures were due later Wednesday.
