Oil Prices Slide on Improved Supply and US-Iran Diplomatic Hopes

Oil prices continued to decline on Wednesday, with Brent crude futures falling $1.09, or 1.1%, to $98.16 a barrel as of 0421 GMT.

The price drop comes as investors eyed improved Gulf supply after Saudi Arabia restarted operations at its critical East-West Pipeline to the Red Sea, three sources briefed on the matter said.

According to Tim Waterer, chief analyst at KCM Trade, 'the market is currently feeling more constructive about the global oil supply picture than it was a few weeks ago.'

The optimism around improved supply and hopes for a diplomatic solution to the US-Iran war weighed on prices.

US President Donald Trump said his envoys had held productive talks with mediators of Iran, stating 'I think there's a lot of momentum for them to make a deal.'