Oil prices rose on Thursday as recovering Middle East crude flows met uncertainty over diplomatic efforts to end the Middle East conflict. WTI gained 2.2% to $92.37 a barrel while Brent added 2.0% to $100.03, even as U.S. crude inventories rose and diesel prices hit a record.
WTI and Brent extend September's rally
U.S. West Texas Intermediate crude futures gained 2.2% to $92.37 a barrel by 04:26 ET (08:26 GMT) on Thursday, while Brent crude futures for December rose 2.0% to $100.03 per barrel. The front-month Brent contract, which expired Wednesday, had settled at $103.50 in the previous session.
Brent gained about 14% in September, its biggest monthly increase since July, while WTI rose about 5%. Traders are weighing signs of recovering Gulf crude oil flows against uncertainty over talks to end the Middle East conflict.
Gulf flows recover but stay below pre-conflict levels
Middle East crude exports reached 16.328 million barrels per day in September, their highest level since the conflict began in February, according to Kpler data. Saudi Arabia also resumed tanker loadings from the Red Sea port of Yanbu after restarting its east-west pipeline.
However, regional flows remain below pre-conflict levels. Kpler data showed Middle East exports in September were still about 3.2 million barrels per day below February levels, leaving the market sensitive to renewed disruption. Iran said Wednesday it had received a U.S. response to its latest ceasefire proposal, after President Trump rejected an earlier plan that involved reopening the Strait of Hormuz in exchange for lifting the U.S. blockade on Iranian ports.
Inventory build contrasts with tight fuel markets
U.S. crude inventories rose by 922,000 barrels last week, compared with a 700,000-barrel draw expected by analysts, the Energy Information Administration reported Wednesday. Fuel stockpiles told a tighter story. Gasoline stocks fell 1.7 million barrels. Distillate stocks, which include diesel and heating oil, dropped 2.3 million barrels.
Trump said Wednesday he was still discussing a possible ban on U.S. diesel exports, despite the White House previously denying a report that it was preparing a 90-day blanket ban. U.S. diesel prices reached a record $6.53 a gallon last week, with diesel supply at historically low levels.
Source: Commodities & Futures News
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