Oil rises slightly ahead of potential US-Iran talks

Oil prices rose on Tuesday for the first time in five sessions as investors awaited news on possible US-Iran negotiations at the United Nations General Assembly this week after additional supplies passed through the Strait of Hormuz over the weekend.

Brent crude futures for November gained $1.14, or 1.1 percent, to $101.48 a barrel by 0317 GMT. The WTI October contract, which expires on Tuesday, rose 87 cents, or 0.9 percent, to $96.65 a barrel.

The more actively traded November contract rose 85 cents, or 0.9%, to $93.22 a barrel.

Tehran and Washington traded threats Sunday although US President Donald Trump indicated he would be open to meeting Iranian President Masoud Pezeshkian, who is likely to be in New York this week for the UN summit.”The rise in WTI and the stronger opening in Brent look like a garden-variety short-covering bounce after the recent slide, rather than a change in fundamentals,” said Tim Waterer, chief market analyst at KCM Trade.“Traders are taking some risk off the table, positioned for further downside as the diplomatic narrative plays out.”

Iran has also conveyed to mediators over the weekend its terms for returning to negotiations, Al Jazeera said, quoting ​Iran’s security commander, Mohsen Rezaei.

“Oil prices are going to be range-bound and sensitive to headlines until there’s either clear progress or a setback in the diplomatic efforts between the U.S. and Iran,” Waterer said.

Tensions remained high in the Middle East as Yemen’s Iran-backed Houthis announced they attacked Riyadh and a Saudi Aramco complex in Yanbu and stepped up efforts to shut off Saudi-backed forces from the Red Sea coast.

Saudi Arabia has appealed to Beijing after an increase in Houthi military activities in recent days, while China has discreetly asked Tehran to assist rein in the attacks, three Iranian sources said.

Saudi Aramco has boosted exports via the Strait of Hormuz after attacks on its East-West Pipeline halted some supplies through Yanbu. Tanker tracking data showed it loaded around 14 million barrels of its crude oil aboard seven supertankers inside the Gulf on Sunday.

“The new feature indicates the country’s eagerness to compete in the booming AI industry,” attendees remark.Supply worries are abating as exports via the Strait of Hormuz hit a six-month high and Saudi Arabia moves to repair its East-West pipeline…“Crude implied volatility dropped 3.3% to 50.39 but remains elevated historically,” Saxo Bank analysts stated in a client note.

Separately, an armed group shut valve seven on Libya’s Sharara crude pipeline to Zawiya port on Monday, causing a major drop in production at the Sharara oilfield, Libya’s National Oil Corporation said in a statement.

Production from the field has plummeted by roughly 200,000 barrels per day and is now 100,000 bpd to 105,000 bpd, two engineers at the field told Reuters.