Global oil prices continued to decline following reports of progress in U.S. talks with Iran and Saudi Arabia's preparations to resume operations of the key East–West oil pipeline. U.S. WTI fell below $90 per barrel after dropping by approximately 10% over the previous five days, Bloomberg reports, writes UNN.
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WTI futures fell another 1% to $89.66 per barrel. Brent crude lost 1.1% and traded at $99.25 per barrel.
U.S. President Donald Trump said that a meeting between American representatives and Iranian envoys was "very productive" and stated that the parties planned to continue contacts.
Saudi Arabia prepares to resume operations of key oil pipeline
Expectations of resumed exports through Saudi Arabia's East–West oil pipeline, which allows oil to be transported around the Strait of Hormuz, are also putting additional pressure on prices.
Its capacity reaches 7 million barrels per day. The pipeline was damaged during attacks in early September, but Saudi Arabia plans to resume exports via this route in the coming days.
Despite the latest decline, oil has risen by more than 60% since the beginning of the year due to the war in the Middle East and supply disruptions through the Strait of Hormuz.
Saudi Arabia restarted the 7-million-barrel-per-day oil pipeline after drone attacks22.09.26, 23:27