Crude stabilized after gains in the prior session as markets assess whether a
Middle East supply recovery can be sustained. Prices rose for a third
consecutive month in September after Washington and Tehran failed to reach a
lasting peace agreement and the Strait of Hormuz has not fully reopened. Trump
told the White House the US fully controls the Strait of Hormuz and will respond
to Iran soon. CIBC Private Wealth Group senior energy trader Rebecca Babin said
recent supply improvements have eased pressure but, absent a credible path to a
durable agreement, the gains may be temporary and this week’s higher flows do
not ensure the same supply next week.
