Oil Prices Plummet on Recovering Gulf Exports and Surging US Inventories
Oil prices dropped on Thursday due to recovering crude exports from the Gulf and rising US inventories, which eased supply concerns. Brent crude futures fell 1.1% to $96.92 a barrel by 0420 GMT, while US West Texas Intermediate crude dropped 1.4% to $89.18 a barrel.
The recovery of oil shipments from the Gulf region and resumed Saudi exports through Yanbu contributed to the decline in prices. Saudi Arabia had earlier restarted operations on its East-West Pipeline, according to Reuters.
US crude inventories rose by 922,000 barrels to 427.3 million barrels in the week ended September 25, exceeding expectations for a 264,000-barrel draw. The Energy Information Administration reported this data.
Renewed diplomatic efforts between the US and Iran may also have contributed to the decline in prices, as investors weighed the potential for reduced geopolitical risks. However, the outcome of these talks remains uncertain.