Oil Pares Gains Amid US-Iran Uncertainty

Crude oil slipped below $92 per barrel on Thursday, paring gains from the previous session amid heightened uncertainty surrounding US-Iran negotiations. Iranian President Masoud Pezeshkian told the UN General Assembly that Tehran would not bow to threats, adding that the Islamic Republic won’t give up the right to develop nuclear technology for economic development. Pezeshkian also said Iran would not allow freedom of navigation through the Strait of Hormuz as long as sanctions and a US blockade remain in effect. In the US, Energy Secretary Chris Wright said the Trump administration was working with refiners on a voluntary reduction in US diesel exports as an alternative to imposing a formal ban on overseas shipments. Meanwhile, Saudi Arabia is taking steps to resume oil exports through its key East-West pipeline. Ukrainian President Zelenskyy also said he and President Trump had discussed an energy ceasefire.

Crude oil rose above $92.5 a barrel on Wednesday after five consecutive sessions of losses, as uncertainty persisted over progress in US-Iran talks. Iran’s President Masoud Pezeshkian said at the UN General Assembly that Tehran remained open to diplomacy but would not negotiate under pressure, while Iran’s military warned it was ready to launch “more crushing” strikes in response to Trump's threats to annihilate Iran earlier this week in his UN adress. Trump’s threats were followed by what he described as productive talks with Iranian envoys, while Tehran has indicated it could reopen the strait if Washington eases military pressure and lifts restrictions on Iranian ports. Saudi Arabia’s partial restoration of its East-West pipeline is helping offset some supply concerns. Also, Ukrainian President Zelenskyy called on US President Trump to organize a trilateral meeting with Russian President Putin. Zelenskyy also said that the he and Trump discussed an energy ceasefire.

Crude oil rose above $92 a barrel on Wednesday after five consecutive sessions of losses, as uncertainty persisted over whether a formal agreement to reopen the Strait of Hormuz was possible. Iran’s President Pezeshkian used his address to the UN General Assembly to reject restrictions on Iran’s civilian nuclear program and reiterate Tehran’s opposition to a US military presence in the Middle East. He also said Iran remained open to dialogue and diplomacy but would not accept negotiations under pressure. Meanwhile, Saudi Arabia is preparing to restart exports through its East-West pipeline in the coming days. On the supply side, US crude inventories rose by 2.969 million barrels to 426.4 million barrels last week, according to the EIA, compared with expectations for a 641,000-barrel draw. The increase exceeded the 1.8-million-barrel build reported by the API, while gasoline and distillate stocks declined.