(RTTNews) – Crude oil prices have shown a strong move back to the upside during trading on Wednesday, regaining ground following the substantial downturn seen over the course of the previous session.
After plummeting $3.22 or 3.5 percent to $89.38 a barrel on Tuesday amid indications crude oil exports from Saudi Arabia’s Red Sea ports are recovering from an attack on a key pipeline, crude for November delivery is jumping $1.02 or 1.1 percent to $90.40 a barrel.
The price of crude oil surged as much as 2.9 percent to a high of $91.96 a barrel earlier in the day but has given back ground since then.
The rebound in the price of crude oil early in the day reflected lingering uncertainty about the U.S. and Iran reaching a deal to end their prolonged conflict.
A report from Axios citing three sources familiar with the talks said efforts by Qatari mediators to broker a diplomatic breakthrough between the U.S. and Iran have made little progress.
“It is stuck,” one of the sources told Axios. “The Iranians are asking for things the U.S. can’t accept. And the U.S. thinks it is winning so there is no need for compromise.”
Oil prices also climbed after President Donald Trump denied an Axios report that he was willing to give Iran sanctions relief and release frozen funds in return for concrete steps to pare back its nuclear program.
However, the price of oil has given back ground following the release of a report from the Energy Information Administration unexpectedly showing a modest increase in U.S. crude oil inventories in the week ended September 25th.
The report said crude oil inventories crept up by 0.9 million barrels last week after climbing by 3.0 million barrels in the previous week. Economists had expected crude oil inventories to edge down by 0.3 million barrels.
At 427.3 million barrels, U.S. crude oil inventories are 2 percent above the five-year average for this time of year, the EIA said.
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