Oil prices edged lower on Thursday after rising about 4% in the previous session, as investors assessed signs that Iran remained open to diplomacy to end its war with the US, although the two sides remain far apart on the terms of a possible agreement.At 7:30 am IST, WTI crude was trading at $91.87 per barrel, down 0.32%, while Brent crude was at $102.53 per barrel, lower by 0.54%.Earlier, Brent crude futures fell 0.9%, to $102.13 a barrel, while West Texas Intermediate futures eased 0.7%, to $91.56.Oil prices had slipped below $100 a barrel on Wednesday after Saudi Arabia began restoring crude supplies through a key pipeline to the Red Sea. Hopes of a diplomatic breakthrough in the US-Iran conflict also weighed on prices.Brent had closed below $100 a barrel on Tuesday for the first time since September 8.Iran and the US remain divided over how to end the war, but diplomacy must continue, a senior Iranian official told Reuters on Wednesday. The comments came after Iran’s president told the UN General Assembly that Tehran would never surrender to US pressure.Tehran was reviewing Washington’s response to its peace proposals, which prioritise lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz, the official said.The reopening of the Strait of Hormuz and lifting of Washington’s naval blockade on Iran were discussed during indirect talks on Tuesday, the official added.However, Iran’s security chief Mohsen Rezaei said on Wednesday that the Strait of Hormuz would not be reopened until Iran’s conditions were met.US Secretary of State Marco Rubio said a deal with Iran would require hard work over a period of time, while adding that US President Donald Trump also had military options.Traders were also assessing the possibility of restrictions on US diesel exports. Ultra-low-sulfur diesel futures fell about 5% in midday trading after Politico reported that the Trump administration was preparing plans for a 90-day diesel export ban. The White House later denied the report.However, Bloomberg reported, citing sources, that Energy Secretary Chris Wright told oil industry leaders to prepare for possible US curbs on diesel exports during calls late Tuesday.Wright had said earlier on Wednesday that a diesel export ban would not work, even as Trump said he would support such a move.Analysts and market watchers have warned that an export ban would do little to ease high energy prices and could instead tighten global supplies and further disrupt economies.Meanwhile, US crude inventories rose by 3 million barrels to 426.4 million barrels last week, according to the Energy Information Administration.
