Oil Prices Decline Amid Recovering Crude Exports and Supply Concerns
Oil prices declined on Tuesday due to concerns over recovering crude exports from the Middle East and potential supply disruptions in the region. Brent crude futures fell by $1.38, or 1.3%, to $103.88 a barrel at 1:03 p.m. ET (1703 GMT), while US West Texas Intermediate crude dropped by $2.04 or 2.16% to $90.58.
The decline in oil prices comes as investors focus on signs of recovering crude exports from the Middle East, which have been impacted by the US-Israeli war on Iran. Saudi Arabia has 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 region.
Crude oil exports from key Middle East producers have rebounded in September to 16.328 million barrels per day, the highest since the US-Israeli war on Iran started in late February, data from Kpler showed on Monday. The increase in crude exports has reduced the bargaining power of Iran, which is seeking an off-ramp in the conflict.
US President Donald Trump said he has offered Iran nothing to end the war, rejecting media reports that cited US officials saying he was willing to ease sanctions and release frozen funds for 'concrete' steps regarding Iran's nuclear program. The White House has urged the European Union to draw down diesel emergency inventories in a bid to lower global prices.