Oil prices edge lower as Iran says it is open to diplomacy to end the war

Sept 24 : Oil prices edged lower on Thursday, after climbing 4 per cent in the previous session, as Iran said it remained open to diplomacy to end the US-Iran war, though the two countries remain far apart on ways to do so.  

Brent crude futures fell 94 cents, or 0.9 per cent, to $102.13 a barrel, while West Texas Intermediate futures eased 59 cents, or 0.7 per cent, to $91.56.

Iran and the United States remain divided over how to bring an end to their war, but diplomacy must continue, a senior Iranian official told Reuters on Wednesday, 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. 

A reopening of the Strait of Hormuz and lifting of Washington's naval blockade on Iran were discussed during indirect talks on Tuesday, the official said.

Earlier on Wednesday, Iran's security chief Mohsen Rezaei said the Strait of Hormuz would not be reopened while Iran's conditions are not met.

US Secretary of State Marco Rubio told reporters on Wednesday that a deal with Iran would involve hard work over a period of time, adding that Trump also had military options.

Traders also evaluated possible curbs on diesel exports.

Ultra-low-sulfur diesel futures were down about 5 per cent in midday trading after website Politico said the Trump administration was preparing plans for a 90-day diesel ban, but the White House denied this.

However, Bloomberg reported later in the day, citing sources, that Energy Secretary Chris Wright told oil industry leaders to brace for possible US curbs on diesel exports in calls late Tuesday.

Wright had said earlier on Wednesday that a diesel export ban would not work even though US President Donald Trump said he would support it. Analysts and market watchers have warned that such a move would do little to ease high energy prices and could worsen global supplies and further disrupt economies.

Meanwhile, US crude inventories rose by 3 million barrels to 426.4 million barrels last week, the Energy Information Administration said. Analysts polled by Reuters had expected a 641,000-barrel draw. Fuel stocks fell.