Oil prices held near their lowest in more than two weeks on Wednesday as improving Gulf crude supplies weighed on the market, though diesel refining margins hit a record high on potential restrictions to US diesel exports.
Oil’s stabilization comes as prices have come under pressure this week amid rising Gulf supplies and hopes that diplomatic talks will halt hostilities in the Middle East.
Saudi Arabia reportedly resumed operations on its East-West Pipeline to the Red Sea on Tuesday, offering more barrels to Asian refiners for lifting from locations outside of the Strait of Hormuz.
Iraq is also increasing its oil exports, the oil minister said on Tuesday. The country is exporting more than 3 million bpd and expects to raise exports via Turkey to more than 600,000 barrels per day.
Wednesday, Brent crude futures rose 37 cents, or 0.37%, to $99.62 a barrel while West Texas Intermediate futures lost 44 cents, or 0.49%, to $90.08.
The Brent benchmark hit its lowest since September 8 in the previous session at $97.36. WTI touched its lowest since September 1 earlier on Wednesday.
The American Automobile Association said the average price of diesel in California was $8.21 a gallon on Tuesday, while the U.S. average hit a fresh record high of $6.27 a gallon.
By CEO NA Editorial Staff
