Oil Prices Dip Amid Recovering Gulf Exports and Increased US Inventories

Oil prices declined by 1% on Thursday as recovering crude exports from the Gulf region and increased US inventories eased supply concerns. Brent crude futures fell to $96.92 a barrel, while US West Texas Intermediate crude dropped to $89.18 a barrel.

The decrease in oil prices comes after both benchmarks rose about $1 a barrel on Wednesday. Brent recorded a monthly gain of around 14% in September, its biggest since July, while WTI increased by about 5% on the month.

According to Sugandha Sachdeva, founder of SS WealthStreet, oil's near-term bias remains negative due to recovering shipments from the Gulf region and a buildup in US inventories. She also noted that renewed US-Iran diplomatic engagement could further reduce the geopolitical risk premium, although a breakthrough remains uncertain.