Oil Rises for Second Day as Uncertainty Over US-Iran Talks Pushes WTI Above $93

Uncertainty surrounding U.S.-Iran negotiations to end the conflict kept international oil prices rising for a second straight day.

Bloomberg reported on September 28 that West Texas Intermediate climbed for a second session and moved above $93 a barrel. Brent crude, the international benchmark, finished trading near $105 a barrel.

Oil prices were lifted by fears that negotiations between the U.S. and Iran had reached an impasse. President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz within seven days. Iranian officials have also privately expressed pessimism about the chances of reaching a deal to end hostilities and reopen the waterway before the U.S. midterm elections in November.

Saudi Arabia's moves to restore crude shipments have eased some supply concerns. Earlier this month, the kingdom restored flows on its East-West pipeline to about half of prior levels after drone attacks had halted operations. According to people familiar with the matter, the pipeline is now carrying at least 3.5 million barrels a day to the Red Sea.

The East-West pipeline is a key alternative route that allows crude to reach the Red Sea without passing through the Strait of Hormuz. But uncertainty over navigation through the strait continues to fuel supply concerns even as pipeline operations resume.

Key indicators of a near-term supply shortage in the oil market have surged recently. Stronger demand for crude available for immediate delivery and continued disruptions at refining facilities worldwide are also driving up prices for petroleum products.

International oil prices are headed for a third straight monthly gain as rising U.S.-Iran tensions, disruptions to shipments through Saudi Arabia's bypass pipeline and the possibility of U.S. restrictions on diesel exports tighten the market.