US, Sep 22 : Oil prices rose on Tuesday, marking their first increase in five sessions, as investors watched for developments on possible US-Iran talks during the United Nations General Assembly in New York.
Brent crude futures for November delivery climbed $1.72, or 1.7%, to $102.06 a barrel by 0617 GMT. US West Texas Intermediate (WTI) crude for October delivery, which expires on Tuesday, gained $1.62, or 1.7%, to $97.40 a barrel. The more actively traded November WTI contract rose $1.28, or 1.4%, to $93.65 a barrel.
The rise followed a sharp decline in the previous session, with analysts describing the latest move as largely a short-covering rebound rather than a major shift in the market outlook.
US President Donald Trump has said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly. Iran and the US exchanged threats over the weekend, while Tehran has reportedly conveyed conditions to mediators for returning to negotiations.
Tim Waterer, chief market analyst at KCM Trade, said crude prices could remain within a range and react sharply to developments in the diplomatic efforts between Washington and Tehran.
Meanwhile, concerns over Middle East supply remain. Yemen’s Iran-backed Houthis have reported attacks targeting Saudi Arabia, while Saudi oil exports through the Strait of Hormuz have increased. Around 14 million barrels of Saudi crude were loaded onto seven supertankers in the Gulf on Sunday, according to tanker-tracking data.
Saxo Bank analysts said supply concerns were easing as shipments through the Strait of Hormuz reached a six-month high and Saudi Arabia worked to restore its East-West pipeline. However, crude market volatility remains elevated.
In another supply-related development, production at Libya’s Sharara oilfield has fallen by around 200,000 barrels per day following the closure of a pipeline valve, adding another source of uncertainty to global crude markets.
For now, traders are closely tracking diplomatic developments, regional security risks and changes in oil flows as they assess the direction of crude prices.