Oil prices moved higher on Thursday as traders assessed signs of recovering crude exports from the Middle East alongside uncertainty surrounding diplomatic efforts to end the regional conflict.
Brent crude futures for December rose 2.0% to $100.03 a barrel by 04:26 ET (08:26 GMT), while US West Texas Intermediate crude futures gained 2.2% to $92.37 a barrel.
The previous front-month Brent contract, which expired on Wednesday, settled at $103.50 a barrel. Brent gained around 14% during September, its largest monthly increase since July, while WTI advanced approximately 5%.
Middle East Crude Exports Recover but Remain Below February Levels
Recent data indicated a recovery in oil exports from the Gulf region. According to Kpler, Middle East crude exports reached 16.328 million barrels per day in September, their highest level since the conflict began in February.
Saudi Arabia has also resumed tanker loadings from the Red Sea port of Yanbu after restarting operations through its east-west pipeline.
However, regional crude exports remained below levels recorded before the conflict. Kpler data showed September exports were still approximately 3.2 million barrels per day below February levels.
The remaining supply shortfall leaves global oil markets exposed to further changes in regional crude flows.
US-Iran Diplomacy Remains in Focus
Diplomatic developments between the United States and Iran also remained under scrutiny.
Iran said on Wednesday that it had received a US response to its latest proposal for restoring a ceasefire. The development followed President Donald Trump’s rejection of an earlier proposal that involved reopening the Strait of Hormuz in return for lifting the US blockade on Iranian ports.
No agreement was reported.
US Crude Inventories Increase
US crude oil inventories rose by 922,000 barrels during the latest week, according to data released by the Energy Information Administration on Wednesday.
Analysts had expected inventories to decline by 700,000 barrels.
Fuel inventories moved in the opposite direction. Gasoline stocks fell by 1.7 million barrels, while distillate inventories, which include diesel and heating oil, declined by 2.3 million barrels.
Trump said on Wednesday that discussions were continuing over a possible restriction on US diesel exports. The White House had previously denied a report that it was preparing a 90-day blanket export ban.
US diesel prices reached a record $6.53 a gallon last week, while diesel inventories remained at historically low levels.