Oil Prices Dip as Gulf Exports Recover and US-Iran Talks Continue

Oil prices declined by 1% on Thursday as investors assessed US-Iran peace talks and Gulf exports. Brent crude futures fell to $96.92 a barrel, while US West Texas Intermediate crude dropped to $89.18 a barrel.

The decline in oil prices was attributed to recovering shipments from the Gulf region, resumed Saudi exports through Yanbu, and a buildup in US inventories. Sugandha Sachdeva, founder of SS WealthStreet, said that 'oil's near-term bias remains negative as recovering shipments from the Gulf region... ease supply concerns.'

The resumption of oil tanker loadings from Yanbu was reported by Reuters on Tuesday, following Saudi Arabia's earlier restart of operations on its East-West Pipeline. Meanwhile, US crude inventories rose to 427.3 million barrels in the week ended September 25, surpassing expectations.

Renewed diplomatic efforts between the US and Iran could further reduce the geopolitical risk premium, although a breakthrough remains uncertain, according to Sachdeva. Iran had received a US response to its latest proposal to resurrect the collapsed ceasefire in the Gulf.