Oil Market — Brent crude futures for November delivery gained 19 cents, or 0.2%, to $105.47 a barrel at 0844 GMT. The more actively traded December Brent contract rose 11 cents to $97.94 a barrel, while U.S. West Texas Intermediate crude increased 22 cents to $92.82.

The moves kept November-loading Brent on course for a monthly increase of about 17%. WTI was also heading toward an approximately 8% gain for September.

Traders continued to monitor how the war involving the United States, Israel and Iran could affect oil production and exports across the region. While shipments from major Middle Eastern producers increased during September, concerns remain over the reliability of deliveries to international markets.

Preliminary data from Kpler showed crude exports by major Middle Eastern producers reached 12.8 million barrels per day in September, the highest level since February. The increase was supported by stronger shipments from Saudi Arabia and the United Arab Emirates.

Some of the additional crude, however, has been moved through alternative transportation methods. Tim Waterer, chief analyst at KCM Trade, said rising export volumes were increasingly being supported by ship-to-ship transfers, which are less efficient and more costly than standard transportation.

Those added logistical expenses have contributed to keeping oil prices elevated despite improvements in physical crude exports.

Diplomatic efforts were also being closely watched. U.S. and Iranian officials separately held discussions with mediators as efforts resumed to bring an end to seven months of war.

U.S. President Donald Trump denied reports that he had offered Iran concessions, including sanctions relief or access to frozen funds, in return for actions related to its nuclear program.

Meanwhile, the U.S. government is considering regulatory changes that could permit wider sales of red-dyed diesel as part of an effort to lower prices, according to people familiar with the discussions. The proposal is being considered as an alternative to a diesel export ban.

With crude prices already substantially higher for September, investors are balancing signs of improving regional supply against the possibility that geopolitical tensions and transportation disruptions could continue.

Original article