Brent Stays Above $100 as US-Iran Talks Remain Stalled

Oil prices continued to move higher on Thursday, with Brent holding above the $100/bbl mark as the absence of clear progress in US-Iran negotiations kept geopolitical and supply concerns in focus. The gains followed a strong advance on Wednesday, when November Brent crude increased $3.83 to settle at $103.08/bbl, while November WTI rose $1.64 to $92.16/bbl.

At the time of writing, November Brent was up another 50 cents, or 0.49%, at $103.58/bbl. November WTI was also higher, gaining 19 cents, or 0.21%, to $92.35/bbl.

US-Iran Differences Keep Supply Risks Elevated

The latest increase came as Washington and Tehran remained apart over the conditions for ending the conflict. Iran was reviewing the US response to its peace proposals, which call for the removal of the US blockade on Iranian ports and the reopening of the Strait of Hormuz.

However, Iran's security chief Mohsen Rezaei said the Strait of Hormuz would remain closed until Tehran's conditions were fulfilled. US Secretary of State Marco Rubio, meanwhile, said that reaching an agreement would take time.

The lack of a concrete breakthrough has kept attention focused on the potential impact of the conflict on regional oil supplies and shipping through the Strait of Hormuz.

Higher US Inventories Limit Price Gains

Rising US crude inventories provided some resistance to the oil price rally.

According to EIA data, US crude stocks increased by 3 million barrels last week to 426.4 million barrels, compared with market expectations for a decline of 641,000 barrels.

Distillate inventories, which include diesel and heating oil, moved in the opposite direction, falling by 428,000 barrels to 107.4 million barrels.

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