Saudi Arabia Restores Crude Supplies, Oil Prices Edge Lower Amid Iran Diplomacy

Oil prices edged lower on Thursday, as investors assessed signs that Iran remained open to diplomacy to end its war with the US, although the two sides remain far apart on the terms of a possible agreement. At 7:30 am IST, WTI crude was trading at $91.87 per barrel, down 0.32%.

Meanwhile, Brent crude was at $102.53 per barrel, lower by 0.54%. The recent decline in oil prices is attributed to hopes of a diplomatic breakthrough in the US-Iran conflict. Which saw Brent crude futures fall 0.9%, to $102.13 a barrel. Meanwhile, West Texas Intermediate futures eased 0.7%, to $91.56.

Oil prices had slipped below $100 a barrel on Wednesday after Saudi Arabia began restoring crude supplies through a key pipeline to the Red Sea.

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Iran's president had told the UN General Assembly that Tehran would never surrender to US pressure. This sparks concerns about the prospects of a deal. However, a senior Iranian official stated that Tehran was reviewing Washington's response to its peace proposals, which prioritize lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz.

The reopening of the Strait of Hormuz and lifting of Washington's naval blockade on Iran were discussed during indirect talks on Tuesday, the official added.

The reopening of the Strait of Hormuz is a critical issue, as it is a vital waterway for international trade. Iran's security chief, Mohsen Rezaei, stated that the Strait of Hormuz would not be reopened until Iran's conditions were met. This has raised concerns about the potential for further escalation in the conflict.

US Secretary of State Marco, Rubio said. a deal with Iran would require hard work over a period of time. Meanwhile, adding that US President Donald Trump also had military options.

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Traders were also assessing the possibility of restrictions on US diesel exports, which could further impact oil prices.

US crude inventories rose by 3 million barrels to 426.4 million barrels last week, according to the Energy Information Administration. This increase in inventories has led to concerns about the potential for a surge in oil production. Which could put downward pressure on prices.

The ongoing conflict between the US and Iran has significant implications for the global energy market. As the situation continues to unfold, investors will be closely monitoring developments in the region to assess the potential impact on oil prices.