Oil Prices Slide Below $100 Amid US-Iran Talks, Saudi Pipeline Restart
Oil prices dipped below $100 per barrel on Wednesday due to increased hopes of easing Middle East tensions after reported US-Iran diplomatic contacts in New York. The partial restart of Saudi Arabia's East-West Pipeline and an unexpected rise in US crude inventories also contributed to the downward pressure.
US President Donald Trump discussed Iran during a meeting with Ukrainian President Volodymyr Zelenskyy, who is in New York for the 81st session of the United Nations General Assembly. When asked about Iran, Trump said there was a meeting that lasted about three hours and 'it went very well'. He added that he was in the process of deciding whether to reach a deal with Iran or 'destroy' the country.
The Iranian state television also confirmed that Foreign Minister Abbas Araghchi met with Trump's advisers Steve Witkoff and Jared Kushner. The meeting focused on Iran's conditions for reopening the Strait of Hormuz, according to reports. On the supply side, Saudi Arabia had resumed oil flows at low levels through the East-West Pipeline, easing concerns over supply.
The American Petroleum Institute estimated that US commercial crude oil inventories rose by around 1.8 million barrels last week, adding to downward pressure on oil prices. The market had expected inventories to decline by 500,000 barrels.