HOUSTON: Global oil prices moved higher again on Wednesday after US President Donald Trump ruled out the possibility of easing sanctions on Iran, while ongoing geopolitical tensions in the Middle East kept investors focused on regional supply risks and the outlook for crude markets.
Oil prices had declined in the previous trading session as crude supplies from the Middle East showed signs of recovery. However, renewed uncertainty over the situation in the region provided fresh support to prices on Wednesday.
According to market data, the November Brent crude contract, which expires on Wednesday, rose by 71 cents, or 0.69%, to $103.30 a barrel.
The more actively traded December Brent contract gained 35 cents to reach $96.51 a barrel.
US West Texas Intermediate (WTI) crude also advanced by 43 cents, or 0.48%, to $89.81 a barrel.
Brent, WTI Set for Monthly Gains
Brent crude is on track to post a monthly gain of around 14%, which would mark its strongest monthly increase since July.
WTI is also heading for a monthly gain of around 4%. During the month, its price climbed above $106 a barrel, marking its highest level since May.
The price spread between Brent and WTI has also widened to its highest level in four months, as markets closely monitor the possibility of US restrictions on diesel exports.
Analysts say a potential ban on diesel exports could increase supplies in the US domestic market. Higher domestic diesel supplies could, in turn, prompt US refineries to reduce crude processing, potentially affecting demand for crude oil and putting pressure on prices.
