Oil prices settle lower

Oil prices closed lower on Tuesday as Saudi crude shipments picked up after the East-West pipeline restarted and vessels resumed moving through the Strait of Hormuz. According to Business Recorder, Brent futures for November delivery finished at USD99.25 a barrel, a drop of USD1.09 or 1.09 percent. October WTI futures, due to expire on Tuesday, closed at USD94.99 a barrel after falling USD1.19, or 1.24 percent.

Both benchmarks had dropped over USD2 a barrel intraday, but losses narrowed after Trump said a peace deal would only arrive after the early November midterms. The US president also warned Iran could face annihilation without a deal, and he is due at UN meetings in New York this week. Before US-Israeli attacks began in late February, roughly one-fifth of global oil and LNG supplies moved through the Strait of Hormuz, according to the report.

Saudi Arabia brought its East-West Pipeline back online, and three sources said Yanbu exports could restart later that day. Drone strikes had earlier stopped loadings at Yanbu when the pipeline was shut on September 13. An Iranian official told Reuters that the strait could reopen within seven days if Washington eased military pressure and lifted its blockade of Iranian ports. Diesel has hit record levels in Europe and the United States as the Iran and Ukraine conflicts cut exports from big producers.