Oil Prices Tumble on Improved Supply and Diplomatic Hopes

Oil prices declined for six consecutive sessions to reach two-week lows as investors factored in improved supply and diplomatic efforts to end the US-Iran war. Brent crude futures fell $1.09, or 1.1 percent, to $98.16 a barrel, while West Texas Intermediate futures dropped $1.50, or 1.67 percent, to $89.01 per barrel.

The restart of Saudi Arabia's East-West Pipeline and increased oil exports from Iraq contributed to the improved supply outlook. US President Donald Trump's comments on productive talks with Iranian mediators also boosted hopes for a diplomatic solution.

Tim Waterer, chief analyst at KCM Trade, noted that the market is 'choosing to price in the possibility of talks' despite continued tough rhetoric from both sides.