Oil Prices Plunge on Improved Supply Hopes and US-Iran Talks

Oil prices continued their downward trend on Wednesday, falling by over $1 per barrel amid improved supply outlooks and hopes for diplomatic talks between the US and Iran.

The Brent crude futures price dropped to $98.16 a barrel, while West Texas Intermediate futures fell to $89.01 per barrel, both hitting two-week lows after six consecutive declines.

Analysts pointed to Saudi Arabia's restart of its East-West pipeline as a key factor in improved supply, with the pipeline now carrying around 4 million barrels per day to the Red Sea. Additionally, Iraq is increasing oil exports, aiming for over 3 million bpd and more than 600,000 bpd via Turkey.

US President Donald Trump's statement that his envoys had held 'productive talks' with Iranian mediators also contributed to market optimism, with some analysts believing there's a 'lot of momentum' for a deal.