Oil Prices Drop Below $99 Amid Renewed Iran Talks
Oil prices have extended their longest losing streak in six sessions, dropping below US$99 a barrel on Wednesday. The decline is largely attributed to renewed US-Iran talks and efforts to restore Saudi Arabia's East-West pipeline, which has raised hopes of improved oil supplies.
US President Donald Trump announced that officials had a 'very productive' meeting with Iranian envoys, although he indicated that he was weighing whether to pursue a negotiated agreement or 'annihilate the Islamic Republic'.
A senior Iranian government official stated that Tehran had conveyed a proposal to Washington under which Iran would reopen the Strait of Hormuz within seven days if the US took steps towards lifting a blockade that has severely curtailed Iranian oil exports.
The Saudi pipeline's planned reopening has added to expectations of improved supply flows. However, some concerns remain about inflation, as the US dollar remained firm due to hawkish comments from Federal Reserve officials strengthening expectations of further interest rate increases.