Saudi Exports Recover as Hopes for US-Iran Diplomacy Lift Oil Prices
Oil prices have dropped to their lowest level in over a week on Monday as Saudi exports recover and hopes for US-Iran diplomacy grow. Brent crude fell by about 2.1% to $101.71 a barrel, while West Texas Intermediate slid roughly 2.1% to $98.15.
The decline marks a sharp reversal from last week, when fears over Saudi infrastructure and restricted shipping pushed Brent above $108. The biggest change is in physical supply, with Saudi crude exports recovering to over 4 million barrels per day so far in September after dropping to 2.4 million in August.
Saudi Arabia is also working to restore part of its damaged East-West pipeline, which allows crude to bypass the Strait of Hormuz. Analysts at ANZ Research said that Saudi Arabia expects roughly half the pipeline's capacity to return within days, reducing the risk of a prolonged loss of export capacity.