Oil climbs above $100 as US-Iran talks stall and fuel stocks tighten

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

The Brent November futures contract increased by about 1 per cent before closing at $103.53 a barrel. Brent also recorded a monthly gain of around 14 per cent.

US fuel inventories decline

Data from the US Energy Information Administration showed that petrol and distillate fuel oil inventories in the United States both fell last week. The figures add to pressure in fuel markets where supplies of refined products, including diesel, remain tight.

The supplied market assessment links pressure on stockpiles and energy markets to several factors, including geopolitical disruptions to supply, strong export demand and releases from strategic reserves.

It also said stockpiles had fallen as countries called on the United States to help address a supply gap involving oil and other petroleum products affected by the war in Ukraine and Iran. The source did not identify those countries or provide further details about the stalled peace discussions between Washington and Tehran.

Inventories remain depleted

Although crude shipments from the Gulf are recovering, global inventories remain depleted. Refined-product availability, particularly diesel, continues to be described as tight.

The combination of recovering crude flows and constrained refined-product supplies means energy prices could remain elevated even as more oil reaches the market, according to the supplied information.

The Brent November contract expired on Wednesday. No date was specified for that expiry in the supplied material.