Oil Prices Slip on Hopes of Diplomatic Solution with Iran
Oil prices fell on Wednesday due to increased supply from Saudi Arabia and the hope of diplomatic talks between the US and Iran. Brent crude futures dropped by 7 cents, or 0.07%, to $99.18 a barrel as of 0119 GMT, while West Texas Intermediate futures declined by 35 cents, or 0.39%, to $90.17 per barrel.
US President Donald Trump's announcement that his envoys had held productive talks with Iranian mediators at the UN in New York added optimism to the market. The possibility of a deal has given traders hope for an end to the nearly seven-month conflict between the two countries, which has disrupted oil flows from Saudi Arabia and its Gulf neighbors.
Saudi Arabia began restoring operations on its East-West Pipeline to the Red Sea, rerouting around 4% of global supply, or approximately 4 million barrels per day, to Yanbu. Iraq is also increasing its oil exports, with over 3 million bpd currently being exported, and plans to boost exports via Turkey to more than 600,000 bpd.