The oil market recorded a slight increase on Tuesday, ending a streak of consecutive daily declines. Investors' attention is currently focused on the United Nations General Assembly this week, with expectations for diplomatic talks between the US and Iran.

Latest Oil Price Developments

The market saw a slight recovery in both major crude benchmarks in early trading on Tuesday (at 00:21 GMT):

• Brent crude (November futures): Up 22 cents (0.22%), reaching $100.57 a barrel.

• WTI crude (October futures - nearing expiration): Up 2 cents (0.02%), to $95.80 a barrel.

• WTI crude (November futures - more actively traded): Up 13 cents (0.14%), reaching $92.49 a barrel.

Awaiting Signals from the US and Iran

Although the two sides exchanged threats on Sunday, President Donald Trump stated he is open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the UN General Assembly. According to Al Jazeera, citing Iranian security official Mohsen Rezaei, Tehran has also conveyed its conditions for re-engaging in negotiations to mediators.

Tim Waterer, chief market analyst at KCM Trade, noted: "The move higher in WTI and the stronger open in Brent have the appearance of a typical short-covering bounce after the recent decline, rather than a fundamental shift."

He also added that oil prices will likely remain range-bound and highly sensitive to diplomatic news between the two countries.

Geopolitical Tensions and Supply

Besides diplomatic factors, the market is also being influenced by elevated tensions in the Middle East and several supply issues:

• Red Sea & Saudi Arabia Conflict: The Iran-backed Houthi group in Yemen claimed to have attacked the capital Riyadh and a Saudi Aramco facility in Yanbu. According to Iranian sources, China has privately urged Tehran to help curb the Houthis after Saudi Arabia appealed to Beijing.

• Aramco Reroutes Exports: After attacks on the East-West Pipeline forced the company to halt some shipments via Yanbu, Saudi Aramco has stepped up exports through the Strait of Hormuz. Tracking data showed the company loaded about 14 million barrels of crude oil onto seven supertankers in the Gulf on Sunday.

• Production in Libya: At the same time, Libya's National Oil Corporation (NOC) Chairman Massoud Suleman stated that the country's Sharara oilfield is experiencing a partial reduction in production, though he did not specify the reason.

The oil market this week is expected to remain volatile based on the latest news from the UN headquarters and the Middle East. Investors are advised to closely monitor political developments that could impact supply.

Source: Reuters