Oil gains as stalled US-Iran talks trump supply recovery

According to Business Recorder, oil futures climbed on Wednesday, with the November Brent contract adding 57 cents, or 0.6 per cent, to $103.16 a barrel. The more active December Brent contract rose 94 cents to $97.10, while US West Texas Intermediate gained 82 cents to $90.20. Prices were supported by stalled US-Iran negotiations aimed at ending their conflict, along with tight fuel supplies.

Brent is heading for a monthly increase of roughly 14 per cent, its largest since July, while WTI is set for about 4 per cent. The gap between the two benchmarks widened to a four-month high as traders weighed possible US curbs on diesel exports. Qatar hopes shuttle diplomacy between Tehran and Washington can produce a breakthrough, but Donald Trump rejected reports by Axios and CNN that he would offer sanctions relief and frozen fund releases for concrete nuclear steps.

Crude supply is recovering, with Goldman Sachs estimating Gulf oil exports had climbed back to 23.3 million barrels per day recently, roughly matching the 2025 average. JPMorgan put total oil exports at 89 per cent of 2025 levels over five days. MUFG analysts said returning crude flows should ease supply-led price pressure, though product shortages and higher freight costs were likely to keep energy markets tight.