On Thursday, oil prices rose sharply from the previous session, reaching $104.19 per barrel. On this day, Brent crude increased by 1.1%, while West Texas Intermediate (WTI) crude also rose by 0.9% to $92.99 per barrel.
Statements from the Iranian President and Reactions
This price increase followed a speech by Masoud Pezeshkian, the President of Iran, at the United Nations General Assembly. In this speech, he stated that Iran would not yield to U.S. pressures but at the same time, Tehran is open to diplomacy. These remarks came after Donald Trump, the President of the United States, warned a few days earlier that if an agreement to end tensions was not reached, he could "destroy" Iran.
Read more: Qatar Increases LNG Exports from the Strait of Hormuz
Analysis of Oil Supply Situation and Its Impacts
A senior Iranian official referred to Washington's response to Iran's proposal to end tensions and noted that significant differences still exist. Indirect negotiations have included the potential reopening of the Strait of Hormuz and the lifting of the U.S. maritime blockade on Iran. These statements have hurt hopes for improved supply in the Gulf, which had previously been bolstered by reports of Saudi Arabia resuming operations on the East-West pipeline to the Red Sea.
Additionally, Iraq has also increased its exports. Furthermore, strong U.S. trade data on Wednesday and the renewed rise in oil prices above $100 have heightened expectations for further interest rate hikes by central banks by the end of this year. The Federal Reserve raised rates last week, partly attributing it to the impact of energy price shocks.
Analysts at BCA Research stated in a note: "The rise in oil prices plays a role in revising the aggressive path of Federal Reserve policy, and last week's rate hike occurred at a time when concerns about persistent inflation continue to linger."
While U.S. crude inventories increased by 3 million barrels to 426.4 million barrels in the week ending September 18, analysts had predicted a decrease of 640,000 barrels. Gasoline inventories also fell by 1.7 million barrels, and distillate and heating oil inventories decreased by 400,000 barrels.
Additionally, a report indicated that the White House is considering a 90-day ban on diesel exports, which sharply reduced futures prices for ultra-low sulfur diesel in the U.S.
Read more: Hamid Bord Emphasized Accelerating the Reconstruction of South Pars Refineries · Masoud Pezeshkian Emphasized the Necessity of Strengthening Energy Cooperation between Iran and Pakistan
