Oil falls on increased Gulf supply and hopes for US-Iran talks

Business Recorder reported that Brent crude futures slipped 7 cents to $99.18 a barrel on Wednesday, while West Texas Intermediate fell 35 cents to $90.17. The moves came as Saudi Arabia restored supply through a key pipeline to the Red Sea and hopes grew for UN-hosted talks in New York to end the US-Iran war.

Donald Trump threatened on Tuesday to annihilate Iran, yet he also said envoys Steve Witkoff and Jared Kushner had held constructive discussions with Iranian intermediaries. Brent ended that session beneath the $100 mark, its first such finish since September 8, as supply prospects improved and efforts to end the nearly seven-month war gathered pace. Tim Waterer of KCM Trade said the market now views the global oil supply outlook more constructively than a few weeks back.

Saudi Arabia restarted its East-West oil line toward the Red Sea on Tuesday, according to three sources, after drone attacks forced a shutdown on September 11. Since the conflict hampered Gulf shipments through the Strait of Hormuz, Riyadh has rerouted roughly 4 million barrels per day, about 4% of global supply, to Yanbu. Iraq is also raising exports, with its oil minister saying volumes exceed 3 million barrels per day and expecting Turkey-route exports to reach 600,000 barrels per day. Separately, US crude stocks climbed by 1.8 million barrels during the week ending September 18, when analysts had anticipated a drop.