Oil prices advanced on Thursday as markets assessed improving crude flows from the Middle East alongside continued uncertainty surrounding diplomatic efforts to end the regional conflict.
December Brent crude futures gained 2.0% to $100.03 per barrel by 04:26 ET (08:26 GMT), while US West Texas Intermediate futures increased 2.2% to $92.37 per barrel.
The previous front-month Brent contract expired on Wednesday after settling at $103.50. Brent recorded an approximately 14% gain in September, its largest monthly increase since July, while WTI rose around 5%.
Gulf Oil Flows Show Signs of Recovery
Middle East crude exports increased during September, according to data from Kpler, reaching 16.328 million barrels per day. That represented the highest level since the regional conflict began in February.
Saudi Arabia has meanwhile resumed tanker loadings at the Red Sea port of Yanbu following the restart of operations through the country’s east-west pipeline.
Despite the improvement, regional exports remained below their February levels. Kpler data showed that Middle East crude exports in September were still around 3.2 million barrels per day lower than in February.
The remaining difference means changes in regional crude flows continue to have the potential to affect global supply conditions.
Markets Monitor US-Iran Diplomatic Efforts
Diplomatic efforts between Washington and Tehran remained another area of focus for oil markets.
Iran said on Wednesday that it had received a US response to its latest proposal aimed at restoring a ceasefire.
The development followed President Donald Trump’s rejection of an earlier proposal involving the reopening of the Strait of Hormuz in exchange for the removal of the US blockade on Iranian ports.
No agreement between the two sides was reported.
US Oil Inventories Rise by 922,000 Barrels
US crude inventories increased by 922,000 barrels last week, according to figures released by the Energy Information Administration on Wednesday. Analysts had forecast a decline of 700,000 barrels.
Fuel inventories declined during the same period. Gasoline stocks fell by 1.7 million barrels, while inventories of distillates, including diesel and heating oil, decreased by 2.3 million barrels.
Trump said discussions were continuing over a possible restriction on US diesel exports. His comments followed an earlier White House denial of a report that the administration was considering a 90-day blanket ban.
US diesel prices reached a record $6.53 per gallon last week, while domestic diesel inventories remained at historically low levels.
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