Oil Prices Move Above $100 as US-Iran Talks Stall

International oil prices climbed above $100 a barrel as concerns over stalled peace talks between the United States and Iran coincided with tightening fuel markets in the United States.

The Brent November futures contract, which expired on Wednesday, gained about 1% to finish at $103.53 a barrel. Brent also recorded a monthly increase of around 14%, its strongest monthly performance since July.

US fuel inventories decline

Data from the US Energy Information Administration showed that petrol and distillate fuel oil inventories in the United States fell last week. The figures added to market concerns about the availability of refined fuels.

Fuel stockpiles have also faced pressure from geopolitical supply disruptions, strong export demand and the release of strategic reserves, according to the source information.

Refined products remain constrained

Global inventories have been depleted, while supplies of refined products such as diesel remain tight. Those conditions have persisted even as Gulf crude shipments have begun to recover.

The war in Ukraine and Iran have affected supplies of oil and other petroleum products, contributing to the reduction in global inventories. Countries around the world have been calling on the United States to help fill supply gaps.

Market conditions indicate that energy prices could remain elevated even if additional crude reaches the market. Tight supplies of refined products and low inventories may continue to support prices, although the source information does not establish that higher prices are certain.