Oil Prices Slide as Gulf Exports Recover
Oil prices dipped on Thursday as crude exports from the Gulf region recovered and US inventories rose, easing supply concerns. Brent crude futures fell 1.1 percent to $96.92 a barrel, while US West Texas Intermediate crude dropped 1.4 percent to $89.18 a barrel.
The price drop came after oil benchmarks rose by about $1 a barrel on Wednesday. Brent recorded a monthly gain of around 14 percent in September, its biggest since July, while WTI increased by about 5 percent on the month.
Saudi Arabia resumed oil tanker loadings from Yanbu after earlier restarting operations on its East-West Pipeline, according to Reuters. The Energy Information Administration reported that US crude inventories rose by 922,000 barrels to 427.3 million barrels in the week ended September 25, exceeding expectations of a 264,000-barrel draw.
Sugandha Sachdeva, founder of SS WealthStreet, said 'oil's near-term bias remains negative as recovering shipments from the Gulf region, resumed Saudi exports through Yanbu and a buildup in US inventories ease supply concerns.' The expert also noted that renewed US-Iran diplomatic engagement could further reduce the geopolitical risk premium, although a breakthrough remains uncertain.