CRUDE WRAP: WTI (X6) SETTLES USD 0.19 HIGHER AT 92.60/BBL

The crude complex was choppy, but ultimately settled with slight gains in heavy, albeit conflicting, headline newsflow. In most recent trade, WTI and Brent fell to lows of USD 91.25/bbl and 96.20/bbl, respectively, amid reports Iran has agreed to halt enrichment in exchange for easing US sanctions. Following this, and paring some of the moves, we swiftly had reports that the chances of an agreement are extremely slim, and that the gaps are wide and obstacles are significant. Before this, but post-European close, geopolitical risk on was seen as US official stated they are continuing positive discussions with Iran through intermediaries, and there will be no agreement without addressing the nuclear issue, as well as Trump is reportedly prepared to ease sanctions on Iran and release its frozen assets in exchange for progress on the nuclear issue. Prior to this, there was numerous mixed reporting, amid renewed US-Iran tensions over the weekend, including Trump rejecting Iran’s latest Hormuz proposal. However, oil dipped from session highs after reports that mediators are expected to hold separate talks with the US and Iran on Monday or Tuesday, but it was later said that Iranian Foreign Minister Aragchi's New York stay has not been extended.

On the supply side, and pressure was seen in the crude complex, as Saudi Arabia's East-West pipeline resumed oil exports. Elsewhere, Saudi Aramco is considering discounts on OSPs for crude loaded off Oman via ship-to-ship transfers to offset record freight rates, and the discussions with Asian refiners for second-half October loading cargoes involve a potential discount of around USD 9/bbl.