Oil prices fall 2% as supply risks ease
- Brent and WTI crude futures fell to two-week lows as concerns over Gulf supply disruptions eased.
- Brent November futures declined 2.1% to $98.23 per barrel, while WTI November futures fell 2.55% to $90.01 per barrel.
- Markets reacted to Iran’s comments on a possible Strait of Hormuz reopening and Saudi Arabia’s planned return of exports from Yanbu port.
Oil prices declined to two-week lows on Tuesday as expectations for Gulf supply recovery improved following developments involving Iran and Saudi Arabia.
Brent crude November futures fell $2.11, or 2.1%, to $98.23 per barrel, while WTI November futures declined $2.36, or 2.55%, to $90.01 per barrel.
Iranian officials said the country could reopen the Strait of Hormuz within seven days if certain conditions involving U.S. military pressure and port restrictions are addressed, according to Reuters.
Saudi Arabia also restarted operations at its East-West Pipeline and could resume exports from Yanbu port after drone attacks halted crude loadings on September 13.
Following the announcement, Brent and WTI futures were trading lower, with Brent November futures at $98.23 per barrel and WTI November futures at $90.01 per barrel.
The Strait of Hormuz is a major global energy route that handled about one-fifth of global oil and liquefied natural gas supplies before recent regional disruptions.
Market participants are also monitoring geopolitical developments, including U.S. diplomatic meetings and ongoing disruptions linked to conflicts involving Iran, Israel, and Russia.
