Oil Prices Tumble Amid Improved Supply Outlooks and Diplomatic Hopes

Oil prices declined on Wednesday as investors took in improved supply outlooks and hopes for diplomatic solutions to the US-Iran conflict. Brent crude futures fell $1.09, or 1.1%, to $98.16 a barrel while West Texas Intermediate futures dropped $1.50, or 1.67%, to $89.01 per barrel.

The declines extended to six consecutive sessions and reached two-week lows. Optimism around increased supply and efforts to end the nearly seven-month conflict drove prices down.

Saudi Arabia's decision to restart operations at its East-West Pipeline to the Red Sea, which had been shut due to drone attacks, added to improved supply outlooks. The pipeline carries 4 million barrels per day, roughly 4% of global supply.