Oil Prices Fall For Sixth Straight Session As Saudi Pipeline Restart, US-Iran Talks Ease Supply Concerns

Oil prices extended their decline on Wednesday as markets reacted to signs of improving crude supply from the Gulf region and renewed hopes of diplomatic progress between the US and Iran.

Brent crude futures dropped $1.09, or 1.1%, to $98.16 a barrel, while West Texas Intermediate (WTI) futures fell $1.50, or 1.67%, to $89.01 per barrel.

Both benchmarks have declined for six consecutive sessions, reaching around two-week lows.

US-Iran talks influence oil market sentiment

Investor sentiment improved after US President Donald Trump said his representatives Steve Witkoff and Jared Kushner had held productive discussions with Iranian mediators aimed at ending the conflict.

“I think there's a lot of momentum for them to make a deal,” Trump said.

Although Trump also issued strong warnings against Iran, traders focused on the possibility of negotiations moving forward.

Gulf supply recovery adds pressure on prices

Saudi Arabia restarted operations on its East-West Pipeline after drone attacks forced a temporary shutdown earlier this month. The pipeline allows Riyadh to transport around 4 million barrels per day to the Red Sea, bypassing the Strait of Hormuz.

Saudi Arabia also offered additional crude supplies to Asian refiners from locations outside the Strait of Hormuz.

Meanwhile, Iraq said it was increasing oil exports, with shipments exceeding 3 million barrels per day. The country expects exports through Turkey to rise further.

Adding to bearish sentiment, US crude inventories increased by 1.8 million barrels in the week ended September 18, against market expectations of a decline, according to industry data.