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Oil Prices Pull Back as Traders Weigh Diplomacy, Demand and U.S. Data

Mixed signals over talks to reopen the Strait of Hormuz and fresh supply data have left markets re-pricing near-term oil availability.

Overview

  • Oil slipped on Thursday after a near 4% gain as traders reassessed recent geopolitical progress alongside new market data.
  • A senior Iranian official told Reuters that Tehran is open to diplomacy but is demanding concrete concessions such as lifting a U.S. naval blockade and reopening the Strait of Hormuz.
  • Iran’s security chief Mohsen Rezaei said the strait will not be reopened until Iran’s conditions are met, undercutting early optimism from indirect talks.
  • Kpler shipping data show Asia’s September crude imports at their highest level since the war began, while the U.S. Energy Information Administration reported an unexpected 3 million-barrel rise in U.S. crude stocks last week.
  • Reports about possible U.S. diesel export curbs have been mixed with a Politico account denied by the White House and Bloomberg reporting Energy Secretary Chris Wright warned industry to prepare, a policy mix that adds short-term volatility and could affect fuel supplies and consumer prices.