Oil Prices Drop on Rising Middle East Exports and Saudi Price Cut

Oil prices extended their two-day decline on Monday as signs of increased exports from the Middle East and a price cut by Saudi Arabia suggested a more supply-driven market.

Brent crude, the global benchmark, dropped as much as 2.4% to below $98 a barrel, while West Texas Intermediate (WTI) approached $87. The declines were driven by larger volumes of oil moving through the Strait of Hormuz, despite ongoing risks in the region.

Gulf producers are sending more tankers through the contested waterway, indicating a willingness to navigate the risks. This move comes as Saudi Arabia reduced its official selling prices, further signaling a potential loosening of market tightness.

The price drops reflect growing concerns about oversupply, even as geopolitical tensions in the Middle East persist.