Oil settled at session lows on Tuesday as recovering Middle East exports and a run of US supply moves outweighed lingering concern over the Israeli-Iran war. Brent fell about 2.5% near $103 a barrel and WTI dropped about 3.5% near $89, though Brent remains on course for a double-digit monthly gain.
Crude sold off through the US session on Tuesday, erasing earlier gains from the European morning. Brent futures closed down about 2.5% at around $103 a barrel. US West Texas Intermediate fell about 3.5% to around $89. Despite the daily drop, Brent remains on course for a monthly gain in double digits, with WTI up about 4%.
Middle East exports rebound
Saudi Arabia resumed tanker loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline, according to trade sources and shipping data. Kpler data released Monday showed crude exports from Middle East producers rebounding in September to around 16 million barrels per day, the highest level since the war began in late February. Qatar said its mediation efforts between the US and Iran are ongoing, though Trump said he has offered Iran nothing to end the war, rejecting reports that he was willing to ease sanctions and release frozen funds for steps on Iran's nuclear programme.
Washington adds supply pressure
The US Department of Energy offered up to 40 million barrels from the Strategic Petroleum Reserve. A similar offer in June, covering the last 40 million barrels under an International Energy Agency loan, drew commitments to borrow only around 500,000 barrels. The Atlantic also reported that Trump backs sanctions relief for Russia in exchange for a prisoner release, which could open a path for US deals involving Russian oil, diesel, rare earth minerals and other commodities.
Diesel stays in focus
The White House has urged the European Union to draw down diesel emergency inventories to lower global prices, saying several EU members have not released as much from reserves as promised. Trump is also weighing regulatory relief that would allow broader sales of red-dyed diesel, an alternative to a diesel export ban, according to two people familiar with the discussions. US diesel futures traded about 2.5% higher, while European diesel futures edged lower.
Traders will now watch whether Middle East exports keep recovering, whether the SPR offer draws real take-up, and whether talks between Washington and Tehran make progress.
Source: Investinglive RSS Breaking News Feed
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