Oil prices remained close to $100 a barrel on Tuesday as traders assessed a proposed Iran-Oman arrangement to manage shipping through the Strait of Hormuz, while renewed Chinese buying added pressure to already tight markets.
Brent crude gained 1.6% over the past two sessions and briefly crossed $98 on Monday, reaching its highest level in nearly six weeks.
West Texas Intermediate was trading above $92. Brent has risen more than 30% since the US-Iran conflict began, though it remains below its roughly $126 peak earlier this year.
Iran said negotiations with Oman were nearing completion after the two countries agreed in August on a framework for a temporary navigation corridor, including mine clearance and discussions on a permanent arrangement.
However, the corridor would not necessarily mean unrestricted reopening, as Tehran has previously said vessels would require its approval and remain under surveillance.
Chinese refiners have increased purchases from Africa, Canada and Latin America, pushing up premiums for non-Middle Eastern crude. The buying comes despite seaborne imports remaining below pre-conflict levels, indicating efforts to secure alternative supplies amid uncertainty.
Around 7 million barrels of crude and refined products are currently crossing Hormuz daily, versus about 20 million before the war, according to Macquarie.
Meanwhile, an attack on Saudi Aramco facilities in Jazan caused no significant damage, while industry leaders gathered in Singapore for the Asia Pacific Petroleum Conference to discuss supply risks and Chinese demand.
