Oil Prices Rise on Saudi Supply Concern, Brent Tops $108

Oil Prices Rise on Saudi Supply Concern, Brent Tops $108

Oil prices rose on Tuesday as fading hopes for US-Iran talks and growing concerns over Saudi oil supplies raised fears of disruptions to global supply.

International benchmark Brent crude futures for November delivery traded at $108.48 a barrel, up from the previous close of $106.68. US benchmark West Texas Intermediate (WTI) crude futures for October delivery increased 1.7% to $103.11 a barrel from $101.39.

Iranian officials signaled that Tehran was not ready to resume talks with Washington unless its conditions were met, dampening expectations for a diplomatic breakthrough that could ease pressure on global oil supplies.

Iranian Supreme National Security Council Secretary Mohsen Rezaei said there would be no talks until Iran’s conditions were fulfilled, responding to US President Donald Trump’s recent remarks that Washington was open to negotiations.

Meanwhile, fresh Houthi attacks on Saudi Arabia added to concerns over the kingdom’s oil exports. Saudi Arabia’s East-West oil pipeline remained out of service following attacks last week.

The pipeline connects oil fields in the country’s east with the Red Sea port of Yanbu and has become particularly important for exports amid disruptions around the Strait of Hormuz.

However, oil price gains were limited by expectations that the US Federal Reserve (Fed) will tighten monetary policy. The Fed began its two-day policy meeting on Tuesday, with markets widely expecting an interest rate hike.

Higher interest rates could weigh on oil demand by slowing economic activity, while a stronger US dollar makes oil more expensive for buyers using other currencies. #Oil Prices Rise on Saudi Supply Concern, Brent Tops $108 Brent Crude Oil Tops $100 as Iran Strikes U.S. Vessels, Tankers