Oil prices extend upward trend

Tehran - BORNA - Brent crude futures rose $2.43, or 2.36%, to $105.51 a barrel, while West Texas Intermediate (WTI) crude futures gained $1.74, or 1.89%, climbing toward $93.90 a barrel.

European diesel futures remained near their all-time highs on Thursday amid uncertainty over a potential US diesel export ban. A White House official had denied on Wednesday reports that a plan for a 90-day US diesel export ban was being prepared.

Analysts and market observers have warned that such a ban would have only a marginal effect in lowering elevated energy prices and could worsen the global supply picture, creating further disruption to economies.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said the physical oil market remains far from fully normal conditions. "Brent continues to carry a higher geopolitical risk premium, as international crude is directly exposed to disruptions in the Middle East and the Strait of Hormuz, while WTI benefits from its relatively insulated, domestic US supply base," she said.

According to Reuters, data from the US Energy Information Administration showed US middle distillate inventories, including diesel and heating oil, fell by 428,000 barrels last week to 107.4 million barrels. Meanwhile, US crude oil inventories rose by 3 million barrels last week to 426.4 million barrels, contrary to analysts' forecasts of a 641,000-barrel decline.

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