CRUDE WRAP: WTI (V6) SETTLES USD 4.44 HIGHER AT 105.83/BBL; BRENT (X6) SETTLES USD 3.07 HIGHER AT 108.75/BBL

The crude complex surged on Tuesday as a series of bullish supply headlines pushed benchmarks higher. Through the European morning and early US session, WTI and Brent initially drifted lower, falling to lows of USD 101.21/bbl and USD 105.10/bbl, respectively, after reports that Oman's Foreign Minister and the US Secretary of State discussed efforts to de-escalate regional tensions. Thereafter, however, it was largely one-way traffic higher for crude. The upside was driven by a series of supply-related developments: firstly, Libya's NOC said production and operations had been suspended at three oil fields after a valve was closed on the Al-Hamada-Zawiya pipeline, warning it may need to declare force majeure if the closure persists. Secondly, Saudi Arabia reportedly informed some European refiners that their September crude cargo loadings had been cancelled. Finally, oil loadings were reportedly suspended at Saudi Arabia's key Red Sea port of Yanbu following the earlier attack on the East-West pipeline. Against this backdrop, WTI and Brent rallied towards session highs of USD 106.75/bbl and USD 109.45/bbl, with participants awaiting further developments surrounding the US/Iran situation and the broader supply outlook. Bloomberg also reported that Saudi Arabia and the forces it backs in Yemen are struggling to counter the Houthi advance, according to assessments from several Western European militaries, and are unlikely to regain the key Red Sea port of Mokha, which the Houthis captured last week. Some strength was pared into settlement after Tasnim reported that Iran and Pakistan are cooperating to ensure regional security, although benchmarks still settled around session highs. Attention now turns to the private inventory data due after-hours.