Oil Prices Fall as Gulf Exports Recover and US Inventories Rise

Oil prices dipped on Thursday as recovering crude exports from the Gulf and a surprise rise in US inventories eased supply concerns. Brent crude futures fell 1.1% to $96.92 a barrel, while US West Texas Intermediate crude dropped 1.4% to $89.18 a barrel.

The decrease 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.

Saudi Arabia resumed oil tanker loadings from Yanbu, and US crude inventories rose by 922,000 barrels to 427.3 million barrels in the week ended Sep 25, compared with expectations for a 264,000-barrel draw.

Renewed US-Iran diplomatic engagement could further reduce the geopolitical risk premium, although a breakthrough remains uncertain, said Sugandha Sachdeva, founder of SS WealthStreet.