Oil rises slightly ahead of potential US-Iran talks

Oil prices edged up on Tuesday, snapping a five-session losing run, as traders awaited possible US-Iran talks at the UN General Assembly this week. Brent November futures rose $1.14, or 1.1 per cent, to $101.48 a barrel by 0317 GMT, while the more heavily traded WTI November contract climbed 85 cents to $93.22. The gains followed extra tanker shipments moving through Hormuz over the weekend.

Business Recorder reported that Tehran and Washington traded threats on Sunday, though Trump signalled openness to meeting Iranian President Masoud Pezeshkian, who is due in New York. According to Al Jazeera, citing Iranian security chief Mohsen Rezaei, Iran has also conveyed its conditions for resuming talks to mediators. KCM Trade's Tim Waterer described the rebound as a short-covering bounce after recent losses rather than a lasting change in fundamentals.

Saxo Bank analysts said supply worries were easing as Hormuz flows reached a six-month high. Saudi Aramco had raised exports through the strait after attacks on the East-West pipeline halted some shipments via Yanbu. Separately, Libya's National Oil Corporation said an armed group shut a valve on the Sharara pipeline, causing a significant drop in output at the oilfield. Two engineers told Reuters that output at the field had dropped by about 200,000 barrels a day and now sits at 100,000 to 105,000 barrels daily.