Oil prices rebound on Monday

Oil prices rebounded on Monday, with Brent crude rising more than 2 per cent after US President Donald Trump rejected an Iranian peace proposal aimed at resolving the conflict and reopening the Strait of Hormuz.

Brent futures rose $2.60, or 2.49 per cent, to $106.92 a barrel at 0803 GMT, while US West Texas Intermediate (WTI) crude gained $2.08, or 2.25 per cent, to $94.49.

Iran presented the peace proposal at the UN General Assembly last week through Qatari mediators. Trump rejected the proposal on Saturday but said on Sunday that US negotiators were expected to hold further talks this week.

Meanwhile, crude exports from key Middle Eastern producers recovered to 12.8 million barrels per day in September, their highest level since the war began in February, according to preliminary Kpler data. Shipments through the Strait of Hormuz were expected to reach about 7.4 million bpd this month.

Brent gained 0.4 per cent last week, while WTI fell more than 7 per cent amid concerns that the US could restrict diesel exports to curb record domestic prices.

Attribution: Reuters