Oil Prices saw a surge on Wednesday following US President Donald Trump's statement denying the will to ease sanctions on Iran while Qatar pushed for peace talks, after falling in the previous session on a recovery in crude supply from the Middle East. Brent crude futures rose $1.14, or 1.11 per cent, to $103.73 a barrel by 0131 GMT. Brent is headed for a monthly gain of around 14 per cent, its biggest climb since July, while US West Texas Intermediate crude increased 34 cents, or 0.38 per cent, to $89.72. Meanwhile, WTI is on track for a 4 percent rise after having breached $106 for the first time since May.
Speculation over potential US diesel export limits pushed the spread between the two benchmarks to its widest point in four months, driven by fears that domestic oversupply could force US refiners to scale back crude processing. Meanwhile, with November mid-term elections approaching, President Donald Trump is weighing sales of red-dyed diesel as an alternative to an export ban in an effort to provide consumer price relief.
"Further evidence of recovering flows through the Strait of Hormuz, hope for alternatives to a US diesel export restriction will emerge, and no material Iranian escalation in the last 24 hours has seen prices come off a little," Saul Kavonic, head of energy research at MST Marquee, said.
He further added that the situation is still volatile, "oil logistics are expensive and constrained". Moreover, trump said on Truth Social, "This is untrue. I offered them NOTHING,"
