Brent Tops $106 as U.S.-Iran Talks Stall and Asia Pumps Up Crude Imports
By Aboki Forex —
Oil prices extended gains on Thursday as traders saw little evidence of progress toward a diplomatic solution in the U.S.-Iran talks. Brent crude futures for November delivery rose 3.05% to $106.22 a barrel, while U.S. West Texas Intermediate futures for November climbed 2.56% to $94.52 per barrel.
The rally came as Iranian President Masoud Pezeshkian blamed the United States and Israel for stoking global instability, and gave no signal that Tehran was ready to step back from the conflict.
Pezeshkian Hardens His Tone at the UN
Speaking at the United Nations General Assembly, Pezeshkian rejected Washington's framing of his country. "The United States president described us as terrorists. We have been the victims of terrorism," he said, according to a live translation of the speech.
He also said Iran would keep fighting back "until our last breath," a line that did little to reassure traders hoping for a negotiated exit from the Middle East conflict.
Earlier in the session, Brent for November delivery was up 3.17% at $106.35 a barrel as of 4:28 a.m. ET. WTI held its 2.56% gain at $94.52 for the same month. The two benchmarks have now strung together consecutive sessions of gains as diplomatic signals remain thin.
Asia Loads Up on Crude
Demand from Asia is adding pressure on the supply side of the market. The region is on track to import 23.96 million barrels of crude per day in September, its highest level since the start of the Iran war, according to Reuters, citing data compiled by commodity analysts Kpler.
That compares with 23.38 million bpd in August, and marks the strongest import pace since February. The jump suggests Asian refiners are pulling forward cargoes rather than waiting for the conflict to resolve.
For traders, the combination is uncomfortable. Peace talks are showing no visible progress, Iran's public posture remains defiant, and Asian buying is running hot. Each of those factors pushes in the same direction for prices.
What It Means for Nigeria
Nigeria sells crude in dollars, so a sustained move above $100 for Brent lifts export earnings and boosts inflows into the Federation Account, which feeds the monthly allocation to the three tiers of government.
But it cuts both ways. Higher crude prices also raise the landed cost of imported refined products, and Nigeria still buys most of its petrol from abroad. That pressure shows up at the pump and in the cost of diesel for businesses running generators and trucks.
The naira benefits from more dollar supply at the margin, but only if the extra oil revenue actually lands in the country's reserves rather than being absorbed elsewhere. For now, traders will keep watching Washington and Tehran for any sign that the escalation is slowing.