Oil Dips Below $100 on US-Iran Talks, Saudi Pipeline Flow
Oil prices fell Wednesday as reported US-Iran diplomatic contacts in New York raised hopes of easing Middle East tensions, while the partial restart of Saudi Arabia’s East-West Pipeline and an unexpected rise in US crude inventories added to downward pressure.
International benchmark Brent crude futures for November delivery traded at $98.49 a barrel, down 0.77% from the previous close of $99.25. US benchmark West Texas Intermediate (WTI) crude futures for November delivery fell by more than 1.3% to $89.28 a barrel from $90.52.
US President Donald Trump discussed Iran during a meeting with Ukrainian President Volodymyr Zelenskyy, who is in New York for the 81st session of the United Nations General Assembly.
When asked about Iran, Trump told US officials had met with members of the Iranian delegation. “There was a meeting that lasted about three hours. It went very well. It ended about an hour ago,” he said.
Earlier, in his address to the UN General Assembly, Trump said he was in the process of deciding whether to reach a deal with Iran or “destroy” the country.
Trump previously said he believed the US would reach a deal with Iran “right after the elections on November 3,” adding that it would not make sense for Iran not to reach an agreement.
Iranian state television also confirmed that Foreign Minister Abbas Araghchi, who is in New York to attend the UN General Assembly, met with Trump’s advisers Steve Witkoff and Jared Kushner.
The meeting, which reportedly took place “at the persistent request of US officials,” focused on Iran’s conditions for reopening the Strait of Hormuz, according to the report.
On the supply side, developments concerning Saudi Arabia’s East-West Pipeline are also being closely monitored.
Reports that Saudi Arabia had resumed oil flows at low levels through the pipeline, which enables exports via the Red Sea port of Yanbu, eased concerns over supply and put further downward pressure on prices.
Meanwhile, the American Petroleum Institute (API) estimated that US commercial crude oil inventories rose by around 1.8 million barrels last week. The market had expected inventories to decline by 500,000 barrels.
The estimated increase, at a time when the market had been expecting a draw, added to downward pressure on oil prices. US Energy Information Administration (EIA) is due to release official US oil inventory data later today. Oil Market Momentum Slows Ahead of US Fed Rate Decision
