Brent Falls as Middle Eastern Oil Exports Recover
Brent crude futures fell by 2.6% to $102.59 per barrel on September 29, as signs of recovering Middle Eastern oil exports eased concerns about supply disruption during the US-Israeli war on Iran.
Saudi Arabia resumed tanker loadings at its Red Sea oil export hub of Yanbu after restarting the East-West Pipeline, according to trade sources and shipping data. The resumption reinforced signs of a broader recovery in regional shipments. Crude exports from Middle Eastern producers had rebounded to 16.328 million barrels per day in September, the highest level since the war on Iran began in late February.
Dennis Kissler, senior vice president of trading at BOK Financial, attributed pressure on crude futures to increased flows through Saudi Arabia's East-West Pipeline. He said that US/Iran negotiations are also continuing and while seemingly far apart, both sides are looking for an off-ramp, and as more oil flows through the Middle East, the less bargaining power Iran will have.