Crude oil traded steadily at around $86 per barrel on Thursday after sharp swings earlier in the week, as the United States and Iran remained locked in a diplomatic stalemate while both sides avoided further escalation. A senior Iranian security official declared that Iran would not relinquish “a single atom” of its enriched nuclear material, rejecting one of Washington’s central preconditions for renewed peace talks. Tehran has also reiterated that the US must lift sanctions and end the naval blockade before the Strait of Hormuz can be reopened to full traffic.
At the same time, Ukrainian drone strikes have disrupted refineries responsible for roughly 30% of Russia’s total oil-processing capacity since late October. Nonetheless, the US oil benchmark remains nearly 20% below its October high, as crude shipments from the Middle East continue to recover. Saudi Arabia reported to OPEC that its crude output jumped by 26% in October, representing one of its strongest monthly production increases in recent years.
