Oil falls $1 on better supply outlook, hopes for US-Iran talks

The Express Tribune reported that oil prices extended their slide on Wednesday, as investors weighed a better Gulf supply outlook after Saudi Arabia resumed work on a key pipeline. Diplomatic progress toward ending the US-Iran conflict added further pressure. Brent futures shed $1.09, a 1.1% drop, to $98.16 a barrel, while West Texas Intermediate lost $1.50, or 1.67%, to $89.01 per barrel.

Both benchmarks have now fallen for six straight sessions, reaching levels not seen in about two weeks. US President Donald Trump threatened on Tuesday to annihilate Iran, yet he also said his envoys Steve Witkoff and Jared Kushner had carried out fruitful talks with Iranian intermediaries. Trump said there was considerable momentum for a deal.

Three sources said Saudi Arabia had restarted its East-West pipeline running to the Red Sea on Tuesday, after drone attacks forced it shut on September 11. Riyadh had been rerouting about 4 million barrels a day, roughly 4% of global supply, through that line to Yanbu. Iraq's oil minister said exports now top 3 million barrels a day, and he expects flows through Turkey to top 600,000 barrels a day. Stockpiles in the US expanded by 1.8 million barrels for the week ending September 18, surprising analysts who had predicted a fall.