Oil dips as recovering Gulf exports ease supply fears, US-Iran diplomacy in focus

Oil prices slipped about 1% on Thursday, according to Business Recorder, as crude exports from the Gulf recovered and a surprise build in US inventories eased supply worries. Brent futures were quoted 1.1% lower at $96.92 per barrel at 0420 GMT, and WTI slipped 1.4% to $89.18, following a rise of about $1 for both on Wednesday.

Brent rose around 14% in September, its largest monthly gain since July, while WTI climbed about 5% over the month. Saudi Arabia resumed tanker loadings at Yanbu after restarting its East-West Pipeline, and Goldman Sachs estimates Gulf exports, including dark exports, have recovered to 23.3 million barrels per day. US crude inventories, according to the Energy Information Administration, climbed by 922,000 barrels to 427.3 million in the week to September 25, against a Reuters poll that had pointed to a 264,000-barrel draw.

Iran confirmed on Wednesday that Washington had replied to its offer to revive the collapsed Gulf ceasefire, but President Donald Trump rejected Axios and CNN reports that he was prepared to grant sanctions relief and unfreeze Iranian funds in exchange for concrete nuclear steps by Tehran. SS WealthStreet founder Sugandha Sachdeva said renewed engagement could ease the geopolitical risk premium, though a breakthrough remains uncertain. Two people familiar with the matter told Reuters that OPEC+ is likely to keep its November production targets unchanged when it meets on Sunday.