Oil Prices Steady Amid Recovering Gulf Exports and US-Iran Diplomacy
Oil prices have steadied after fluctuating earlier in the day due to recovering Gulf crude exports and a surprise rise in US inventories. Brent crude futures rose by 0.6% to $98.67 a barrel, while US West Texas Intermediate (WTI) crude increased by 0.5% to $90.09 a barrel.
The stabilizing trend in oil prices comes as Gulf exports recover from the recent disruptions caused by the Middle East conflict. Saudi Arabia has resumed oil tanker loadings from Yanbu after restarting operations on its East-West Pipeline, according to Reuters. The Energy Information Administration reported that US crude inventories rose by 922,000 barrels to 427.3 million barrels in the week ended September 25.
Despite the positive developments, some analysts remain cautious about the future of oil prices. Sugandha Sachdeva, founder of SS WealthStreet, stated that 'oil's near-term bias remains negative as recovering shipments from the Gulf region, resumed Saudi exports through Yanbu and a buildup in US inventories ease supply concerns.'
The ongoing diplomatic efforts between the US and Iran may also impact oil prices. Goldman Sachs estimates that Gulf oil exports have recovered to 23.3 million barrels per day over the last week, which is in line with their 2025 average.