Oil Prices Slip as Saudi Arabia Restores Supply and Hopes for US-Iran Deal Rise
Oil prices fell on Wednesday as Saudi Arabia restored crude supply through its East-West Pipeline to the Red Sea. This move, combined with hopes for a diplomatic solution to the US-Iran conflict, drove benchmark Brent crude down below $100 a barrel.
The pipeline was shut down on September 11 due to drone attacks, which forced Riyadh to reroute around 4% of global supply through the pipeline to Yanbu. Since then, Saudi Arabia has been using the pipeline to transport around 4 million barrels per day.
US President Donald Trump's comments on Tuesday also contributed to the optimism surrounding a possible deal between the US and Iran. He stated that his envoys had held 'productive talks' with mediators of Iran to end the conflict, saying 'I think there's a lot of momentum for them to make a deal.'
Industry data showed that US crude inventories rose by 1.8 million barrels in the week to September 18, adding downward pressure on oil prices.