Oil Price Drop Supports US Stock Futures Amid Pipeline Restart

US stock futures edged higher on Tuesday, taking a breather after Monday's tech-led push. The S&P 500 and Nasdaq futures were up around 0.1%, while Dow futures were slightly stronger.

The mood in markets was partly influenced by energy prices, as WTI crude oil fell 2.8% to $89.83 a barrel. This drop comes after Saudi Arabia restarted flows through its East-West Pipeline and may resume Red Sea exports on Tuesday, easing concerns of an immediate supply squeeze.

Saudi's pipeline restart is significant because it reduces the chance of a new disruption forcing oil prices higher in the near term. As a result, crude typically requires a smaller 'risk premium', which can soften inflation expectations and make financial conditions feel less tight.