Crude oil climbed above $87 a barrel on Thursday, extending gains for a second straight session as prices sought to rebound from a ten-week low of $86 reached on November 10. Market participants weighed rising tensions between Washington and Tehran against signals of a supply recovery led by Saudi Arabia.
US President Donald Trump said the United States no longer needs a deal with Iran, indicating a shift away from recent diplomatic efforts. Tehran likewise held a firm line, with senior official Mohsen Rezaee rejecting any removal of enriched nuclear material from the country.
On the supply front, Saudi Arabia reported a 26% increase in oil production in October, lifting output to one of its highest monthly levels in years, while Iraq also boosted production to a wartime record. Adding to downward pressure on prices, EIA data showed that US crude inventories rose by 4.657 million barrels in the week ended November 6, the largest weekly build since August and a break from five consecutive weeks of declines.
