Oil Prices Slip Below $100 as Saudi Pipeline Restored, US-Iran Talks Gain Momentum
Oil prices have retreated below $100 per barrel as Saudi Arabia restored crude supplies through its key East-West Pipeline to the Red Sea, while hopes of a diplomatic breakthrough in US-Iran talks also contributed to the decline.
The West Texas Intermediate (WTI) crude price was trading at $90.10 a barrel on Wednesday, down 42 cents or 0.46%, while Brent crude stood at $99.09, down 16 cents or 0.16%.
The pipeline had been shut since September 11 after drone attacks halted crude loadings at the kingdom's Yanbu port. Saudi Arabia has been using the pipeline to reroute around 4 million barrels of crude per day to Yanbu, equivalent to about 4% of global oil supply.
US President Donald Trump said his envoys had held productive talks with Iranian mediators aimed at ending the war, adding that 'I think there's a lot of momentum for them to make a deal.'