Middle East Oil Exports Rebound, Pressuring Crude Prices

Oil prices settled down 2.5% on Tuesday as investors focused on signs of recovering crude exports from the Middle East, although prices headed for monthly gains due to lingering concern about supply disruptions during the US-Israeli war on Iran.

The Brent crude futures closed down $2.69, or 2.6%, at $102.59 a barrel, while US West Texas Intermediate crude settled down $3.22, or 3.5%, at $89.38.

Crude futures were under pressure this morning on news that Saudi Arabia's East/West pipeline flows have moved up, and US/Iran negotiations are continuing, with both sides looking for an off-ramp. The less bargaining power Iran will have as more oil flows through the Middle East.

Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline, improving the outlook for oil exports from the Middle East.