Oil prices stabilized as Gulf exports recovered and an unexpected rise in US inventories eased supply concerns
Oil prices stabilized on Thursday as the recovery of Gulf crude exports and an unexpected increase in US inventories alleviated supply worries. Investors, who were weighing renewed US-Iran diplomatic efforts to end the conflict in the Middle East, were unsettled by the recall of the Iranian delegation.
Brent crude futures rose 0.6% to $98.67 per barrel at 07:04 GMT, while WTI crude climbed 0.5% to $90.09 per barrel.
Prices fluctuated during the session; both benchmarks initially lost more than 1% in value but later recovered their losses.
Brent crude recorded its largest monthly gain since July, rising approximately 14% in September, while WTI crude appreciated by about 5% over the month.
Oil's short-term trajectory will remain under pressure due to the recovery of shipments in the Gulf region, Saudi Arabia's resumption of exports via Yanbu, and the rise in US inventories easing supply concerns. Geopolitical factors will determine the direction.
Meanwhile, the US Energy Information Administration (EIA) announced that US crude oil inventories rose by 922,000 barrels to 427.3 million barrels for the week ending September 25, whereas expectations had pointed to a 264,000-barrel decline. Although it remains uncertain whether concrete progress will be achieved, positive diplomatic engagement between the US and Iran could further lower the geopolitical risk premium.
On Wednesday, Iran announced it had received a response from the US regarding its latest proposal to revive the collapsed Gulf ceasefire, while Trump denied reports indicating a willingness to ease sanctions on Iran and unfreeze Iranian funds.
Meanwhile, it appears likely that the OPEC+ group of oil producers will keep their November oil production targets unchanged at their meeting on Sunday.
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