Crude Prices Plunge as Persian Gulf Countries Bypass Strait of Hormuz

Oil prices have fallen due to increased oil flows out of the Persian Gulf as producing countries use various methods to bypass the Strait of Hormuz and employ 'ship-to-ship' transfers.

This development has led to a decrease in crude prices, with WTI's high at $84.70/bbl for October and its low at $78.55 (inventory gain) on Wednesday.

The Energy Information Administration's (EIA) Weekly Petroleum Status Report indicated that commercial crude oil inventories increased slightly last week, while the Strategic Petroleum Reserve was down 3.7 million bbl to 290 million bbl (the lowest level since 1982).

The US and Iran's peace talks have stalled, with the White House stating it won't return to the temporary peace terms put in place in June.