Oil prices rose on Tuesday, September 22, as investors monitored the possibility of talks between the United States and Iran at the United Nations General Assembly this week, while easing supply concerns limited the gains.
Brent crude futures for the November contract increased by $1.14, or 1.1%, to $101.48 per barrel by 0317 GMT. US West Texas Intermediate (WTI) crude for October delivery, which expires on Tuesday, gained 87 cents, or 0.9%, to $96.65 a barrel.
The more actively traded November WTI contract also rose 85 cents, or 0.9%, to $93.22 per barrel.
The gains marked oil’s first increase in five sessions. Analysts said the rise appeared to reflect short-covering rather than a major shift in market fundamentals as traders awaited developments in US-Iran diplomacy.
KCM Trade chief market analyst Tim Waterer said traders who had positioned themselves for further declines were reducing some of their exposure while diplomatic developments unfolded. He added that oil prices could remain range-bound and highly sensitive to headlines until there is clearer progress or a setback in negotiations.
US President Donald Trump has said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly in New York. Iran has also conveyed conditions to mediators for potentially re-engaging in negotiations, according to reports.
Meanwhile, Middle East tensions remain a major factor for oil markets. Yemen’s Houthi group has claimed attacks targeting Riyadh and a Saudi Aramco facility in Yanbu, raising concerns about regional supply disruptions.
Saudi Aramco has increased crude exports through the Strait of Hormuz after attacks on its East-West Pipeline disrupted some shipments through Yanbu. Around 14 million barrels of Saudi crude were loaded onto seven supertankers in the Gulf on Sunday, according to tanker-tracking data.
Analysts at Saxo Bank said supply concerns were easing as shipments through the Strait of Hormuz reached a six-month high, while Saudi Arabia worked to restore its pipeline.
Separately, Libya’s Sharara oilfield production has fallen by around 200,000 barrels per day after an armed group closed a pipeline valve, adding another supply risk to the global oil market.
