Oil prices rose by approximately 2% on Thursday, September 24. This came as diplomatic talks between the United States and Iran showed no significant progress, while investors focused on uncertainty over a potential U.S. ban on diesel fuel exports. UNN reports this, citing Reuters.
Details
Brent crude oil futures rose by $2.03, or 2%, to $105.11 per barrel at 13:20 GMT (16:20 Kyiv time), while West Texas Intermediate futures rose by $1.48, or 1.6%, to $93.64 per barrel.
The price of Brent crude rose to $106.50 earlier that day following reports indicating that Iran had given the United States one week to meet its publicly stated demands, such as lifting the U.S. naval blockade.
Iran and the United States remain divided over how to end their conflict, but diplomacy must continue, a senior Iranian official told Reuters on Wednesday, after Iran's president told the U.N. General Assembly that Tehran would never submit to U.S. pressure.
The official said Tehran was reviewing Washington's response to its peace proposals, whose priorities include lifting the U.S. naval blockade of Iranian ports and restoring the operation of the Strait of Hormuz.
European diesel futures at record highs
European diesel futures reached record highs on Thursday amid uncertainty over a potential U.S. ban on diesel fuel exports. On Wednesday, a White House official denied reports that the United States was preparing a 90-day ban on diesel fuel exports.
A European Commission spokesperson said on Thursday that the EU was concerned about reports of U.S. plans, as such a move risked negatively affecting both sides.
Analysts and market observers warn that a U.S. ban on diesel fuel exports would do little to lower high energy prices and could worsen global supply conditions and cause further disruption to the economy.
What experts say
The physical oil market remains far from fully normalizing, said Priyanka Sachdeva, head of market analysis at Phillip Nova.
"Brent retains a significant geopolitical and maritime premium, as international oil is more directly exposed to disruptions in the Middle East and around the Strait of Hormuz, while WTI benefits more from relatively isolated supplies from the United States," Sachdeva added.
According to the Energy Information Administration, U.S. distillate inventories, including diesel fuel and heating oil, fell by 428,000 barrels last week to 107.4 million barrels.
Meanwhile, U.S. crude oil inventories rose by 3 million barrels last week to 426.4 million barrels, although analysts surveyed by Reuters had expected a decline of up to 641,000 barrels.