Oil prices up, but off highs as Qatari mediators plan US-Iran talks
USO•Oil prices rose on Monday but eased from session highs as Qatari mediators were expected to hold separate talks with the US and Iran. Brent was up 0.9% at $105.23 a barrel and WTI gained 0.2% to $92.61; Middle East crude exports rebounded to 12.8 million barrels per day in September.
1. Oil eases from highs
Oil prices rose on Monday but retreated from session highs as Qatari mediators were expected to hold separate talks with the US and Iran on Monday or Tuesday. Brent futures were up 91 cents, or 0.9%, to $105.23 a barrel, while US WTI crude gained 20 cents, or 0.2%, to $92.61. Prices had earlier surged more than $4 a barrel after President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz.
2. Exports rebound
Crude exports from key Middle East producers rose to 12.8 million barrels per day in September, the highest level since the war began in February, preliminary Kpler data showed. Shipments through the Strait of Hormuz were set to reach about 7.4 million barrels per day this month, but UBS analyst Giovanni Staunovo said flows remained below pre-conflict levels and the market was undersupplied.
3. Diesel measures considered
The White House was considering regulatory relief to allow broader sales of red-dyed diesel in an effort to reduce soaring fuel prices. The US Transportation Department also finalized lower vehicle fuel economy standards on Monday.
