Oil Prices Slide as Middle East Exports Recover
Oil prices fell on Tuesday as Middle East exports showed signs of recovery and US supply-related headlines gained traction. Brent futures closed down circa 2.5% at around $103 a barrel, while US West Texas Intermediate fell circa 3.5% to around $89.
The physical picture improved during the day with Saudi Arabia resuming tanker loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline. Crude exports from Middle East producers rebounded in September to around 16 million barrels per day, the highest level since the war began in late February.
Diplomacy also played a part in the early softening with Qatar saying its mediation efforts are ongoing and aimed at building common ground between the US and Iran. However, Trump rejected media reports that he was willing to ease sanctions and release frozen funds in return for concrete steps on Iran's nuclear programme.