Oil prices rose on Wednesday after US President Donald Trump denied his willingness to ease sanctions imposed on Iran, at a time when Qatar's efforts to push Tehran and Washington towards peace talks increased the geopolitical risk premium in the market, despite improved crude supplies from the region.
Brent crude for November delivery, which expires on Wednesday, rose 71 cents, or 0.69 percent, to $103.30 a barrel, while the most active December contract rose 35 cents to $96.51. West Texas Intermediate crude also increased 43 cents, or 0.48 percent, to $89.81.
Brent is heading to achieve monthly gains of approximately 14 percent, its largest rise since July, while US crude is heading to achieve an increase of about 4 percent, after exceeding the level of $106 for the first time since May.
The difference between the two crude benchmarks widened to its widest levels in four months, with the market anticipating the possibility of the United States imposing restrictions on diesel exports, which may increase supply in the local market and push American refineries to reduce crude refining rates.
Trump is discussing allowing the sale of red diesel, instead of imposing a ban on its export, with the aim of reducing prices for consumers as the midterm congressional elections approach in November.
“Continuing uncertainty over sanctions relief and negotiations keeps the geopolitical risk premium built into prices,” said Sugandha Sachdeva, founder of SS Wealth Street, a research firm in New Delhi.
She added that improved supplies may limit additional gains, but renewed unrest or escalating tensions may push prices to a new wave of rise.
In Doha, Qatar said on Tuesday that it hopes that shuttle diplomacy efforts between Iran and the United States will lead to a breakthrough in the negotiations.
But Trump denied a report published by Axios that quoted US officials as saying that Washington is ready to ease sanctions on Iran and release frozen Iranian funds in exchange for Tehran taking “tangible steps” regarding its nuclear program.
Supplies improve
On Tuesday, Saudi Arabia resumed loading oil tankers from the port of Yanbu on the Red Sea, after restoring pumping operations through the East-West pipeline.
JPMorgan estimates showed that oil exports from Middle Eastern producers rose in September to 16.328 million barrels per day, the highest level since the outbreak of the US-Israeli war with Iran in late February.
The bank said in a note that the restoration of Saudi East-West Pipeline flows raised the region’s exports to only about 11 percent below pre-war levels, describing the recovery as “remarkable” in a region still witnessing war.
JPMorgan estimated that the average daily oil exports during the past five days amounted to 20.5 million barrels per day based on a ten-day average, equivalent to 89 percent of 2025 levels.
In the United States, crude and gasoline stocks rose, while distillate stocks fell last week, according to preliminary data reported by market sources from the American Petroleum Institute.
Markets are awaiting official inventory data issued by the US Energy Information Administration later Wednesday, amid expectations of analysts polled by Reuters for a decline in crude and petroleum product inventories.
King Felipe VI of Spain said on Tuesday that European countries should have shown more solidarity with Madrid and provided it with greater support following the mass crossing of tens of thousands of migrants into the Ceuta enclave.
The king was speaking during a dinner party held on the occasion of a visit by French President Emmanuel Macron, and his speech was unusually frank, reflecting the scale of the crisis facing Spain in the wake of the influx of migrants across the Ceuta border that occurred two months ago.
The king said that what happened in the enclave on the coast of North Africa was “unacceptable” and led to a massive challenge to public security and order, as well as the humanitarian aspect.
He continued, “It is a position that must lead to strengthening cooperation between member states in terms of resources and support.”
He added, "The European countries that are exposed to the greatest amount of pressure because they are located on the external borders of the European Union cannot bear alone a responsibility that also falls on everyone else."
The king spoke during a dinner held at the Royal Palace in Madrid, which was also attended by Socialist Prime Minister Pedro Sanchez, one of the few European supporters of the benefits of immigration, who launched a major campaign to regularize the conditions of irregular migrants that ended in the summer.
However, Sanchez proposes changes to asylum rules to return arrivals more quickly, which NGOs and lawyers say would violate human rights conventions.
In response to a question in a press conference about these plans, Regional Policy Minister Angel Victor Torres said that the government is “studying the possibility” of making a legislative amendment, but pointed out that it is “not easy” due to issues related to international law.
Following the crossing of about 72,000 migrants into Ceuta on July 30, European Commission President Ursula von der Leyen praised the rapid measures taken by Spain to return most of the arrivals to Morocco. However, other leaders showed less understanding, and Italy suspended the Schengen Agreement on freedom of movement arrangements with Spain for a month.
On Tuesday, European Union Commissioner for Migration Magnus Brunner revealed a plan to strengthen controls on the bloc's external borders in the wake of the chaotic influx of migrants to Ceuta.
The plan, which requires approval by member states, will strengthen the powers of the European Border and Coast Guard Agency (Frontex) and provide it with a force ready for immediate deployment.
“Ro’a Al-Haram Al-Makki” and “Ro’a Al-Madina Holding” companies, affiliated with the Saudi Public Investment Fund, signed two strategic cooperation agreements with the Islamic Trust Fund of Brunei (TAIB), aiming to expand areas of investment and development cooperation between Saudi Arabia and Brunei Darussalam, and to explore new opportunities in Mecca, Medina and Brunei.
The two agreements were signed in Bandar Seri Begawan, the capital of Brunei, by the CEO of “Ru’a Al-Haram Al-Makki” Company, Bambang Kajairi, the CEO of “Ru’a Al-Madinah Holding Company”, Eng. Ahmed bin Wasl Al-Juhani, and the third permanent secretary in the Ministry of Economy, Trade and Industry and Managing Director of the (TAIB) Fund, Hasna bint Haj Ibrahim.
The signing ceremony was witnessed by the Head of the General Department of Local Real Estate Investments at the Public Investment Fund, Saad Al-Karroud, the Director of the Real Estate Portfolio Management in the Fund’s Western Region, and the Chairman of the Board of Directors of “Ru’a Al-Madina Holding Company” Nayef Al-Hamdan, along with the Minister of Religious Affairs and Advisor to the Islamic Trust Fund Foundation of Brunei (TAIB), Pengiran Dato Seri Setia Haj Muhammad Tashim bin Pengiran Haj Hassan.
The two agreements aim to expand areas of cooperation between Saudi and Brunei institutions, and open new paths for investment and development in Mecca and Medina, including projects related to hospitality, housing, and destination development, in addition to exploring opportunities for mutual investment in Brunei.
Under the first agreement, the “Ru’a Al-Haram Al-Makki” company and the “TAIB” Fund will discuss the possibility of investing in a joint project within “King Salman Gate” in Mecca, which includes a proposal to develop real estate designated for hospitality and residential uses, with an estimated total development value of about 9.7 billion riyals ($2.6 billion).
Proceeding with the project remains subject to completing the due diligence examination, obtaining the necessary approvals, completing financing arrangements, and concluding final agreements between the parties.
“Ro’a Al-Haram Al-Makki”, one of the Public Investment Fund companies, assumes the role of the main developer of the “King Salman Gate” project, and through it it seeks to attract international institutions to participate in the investment opportunities related to the project, in parallel with leading its development processes and implementing its comprehensive vision.
The agreement allows the “TAIB” Fund to join “King Salman Gateway” as a strategic international partner, as part of “Visions of the Holy Mosque of Mecca” to expand its cooperation with investment institutions from various parts of the Islamic world.
In a parallel track, “Ro’a Al-Haram Al-Makki” and “Ro’a Al-Madina Holding”, under a separate agreement with the “TAIB” Fund, will discuss opportunities for cooperation in the fields of investment and development in Mecca, Medina and Brunei Darussalam, which will allow linking investment and development opportunities in the two cities with investments and expertise coming from Brunei, and opening the way for mutual investments between the two sides.
“Rowa Al Madinah Holding” is working on a number of real estate development and investment initiatives in Medina, including the areas of urban planning, hospitality, commercial development and infrastructure.
The “Roua Al Madinah” project is the company’s main project, and it has been planned to be an integrated destination for hospitality and commercial activities, contributing to increasing the capacity of Medina and enriching the visitors’ experience, within the goals of “Vision 2030.”
The two agreements come within the framework of expanding investment relations between Saudi Arabia and Brunei Darussalam, especially in projects related to Mecca and Medina, with the two companies, “Ro’a Al-Haram Al-Makki” and “Ro’a Al-Madina Holding,” seeking to attract international institutions to participate in development and investment projects in the two cities, and to support projects aimed at increasing the capacity and improving the experience of the guests and visitors.
