Oil Prices Fall as Gulf Exports Recover, US-Iran Diplomacy in Focus
SINGAPORE — WEB DESK: Oil prices fell around 1% on Thursday as recovering crude shipments from the Gulf and an unexpected increase in US inventories eased concerns about global supplies, while investors continued to monitor renewed diplomatic efforts between the United States and Iran.
Brent crude futures declined 1.1% to $96.92 a barrel, while US West Texas Intermediate crude dropped 1.4% to $89.18 a barrel.
The decline came after both benchmarks gained around $1 a barrel in the previous session.
Despite Thursday’s losses, crude prices recorded strong gains during September as Middle East conflict and disruptions to regional energy shipments added a significant geopolitical premium to the market.
Brent gained around 14% in September, its biggest monthly increase since July, while WTI advanced about 5%.
Supply concerns have begun to ease as oil shipments from the Gulf recover. Saudi Arabia has resumed tanker loadings from Yanbu after earlier restarting operations through its East-West Pipeline.
Goldman Sachs estimated that Gulf oil exports, including shipments involving vessels operating without active location transponders, recovered to around 23.3 million barrels per day over the past week.
US inventory data also weighed on prices.
American crude inventories unexpectedly increased by 922,000 barrels to 427.3 million barrels in the week ending September 25. Market expectations had pointed to a decline of around 264,000 barrels.
Investors are simultaneously monitoring renewed diplomatic contacts between Washington and Tehran.
Iran said it had received a US response to its latest proposal aimed at reviving a collapsed Gulf ceasefire. However, uncertainty remains over whether the diplomatic engagement will produce a breakthrough.
US President Donald Trump has denied reports that Washington was prepared to offer Iran sanctions relief or release frozen Iranian funds in exchange for steps related to Tehran’s nuclear programme.
Meanwhile, OPEC+ producers are expected to discuss their November production policy at a meeting on Sunday. Current expectations indicate that the group could maintain existing production targets.
With Gulf shipments recovering but US-Iran diplomacy still uncertain, oil markets remain sensitive to both physical supply developments and geopolitical risks.
