Oil Prices Slide Amid Saudi Export Recovery
Oil prices fell on September 21 as investors assessed Saudi Arabia's export recovery. Brent crude futures dropped 81 US cents, or 0.78 per cent, to $103.06 a barrel at 12:31 am GMT after settling down 0.91 per cent on September 18. US West Texas Intermediate crude was at $99.41 a barrel, down 89 US cents, or 0.89 per cent.
The decline comes despite Saudi Arabia's efforts to increase exports through the Strait of Hormuz in September and October after halting some shipments via Yanbu. Yemen's Iran-backed Houthis attacked 'sensitive' sites in Riyadh on September 19 with missiles and drones, as well as an Aramco facility in the Red Sea city of Yanbu.
JPMorgan analysts said Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia's East-West pipeline. According to provisional data from analytics firm Kpler, Saudi exports have recovered to just over 4 million barrels per day (bpd) so far in September after slumping to 2.4 million bpd in August.