Oil settles up around 4pc

Business Recorder reported that Brent crude settled 3.86 percent higher at USD103.08 a barrel on Wednesday, a gain of USD3.83, in choppy trade. West Texas Intermediate rose 1.81 percent to USD92.16. Traders weighed remarks by Iranian President Masoud Pezeshkian, who vowed at the UN General Assembly that Tehran would never surrender, a day after Donald Trump threatened to annihilate Iran.

Diesel futures moved in the opposite direction, slipping about 5 percent after Politico reported that the Trump administration was drafting proposals for a 90-day diesel ban, a story the White House denied. Earlier on Wednesday, US Energy Secretary Chris Wright argued that limiting diesel exports would be ineffective, while market watchers said such a step would offer little relief for costly energy and could strain supplies worldwide.

Prices were also weighed down by more Gulf crude flows and optimism over a possible settlement between Washington and Tehran. Brent had touched USD97.36 on Tuesday, its lowest since September 8, and Saudi Arabia brought its East-West Pipeline back online that day after drone attacks, which Saudi Arabia blamed on an Iraqi militia, forced a shutdown on September 11. The Energy Information Administration reported that US crude stocks grew by 3 million barrels, lifting them to 426.4 million for the week to September 18, whereas a Reuters poll had pointed to a 641,000-barrel draw.