Oil prices fell for a sixth straight session on Wednesday, with November Brent crude futures down 0.7% at $98.58 a barrel and West Texas Intermediate down 1.3% at $89.38, amid signs of progress in talks between the United States and Iran and an improved outlook for crude flows from the Middle East.
Both crude benchmarks had lost more than 1% in the previous session, while Brent closed below $100 on Tuesday for the first time since September 8.
Talks ease supply concerns
Prices fell after US President Donald Trump said US officials had held a three-hour meeting with Iranian representatives in New York, raising hopes that negotiations could ease the conflict and disruptions surrounding the Strait of Hormuz.
The meeting was “very good” and productive, and lasted three hours.
The meeting was the first known direct contact between US and Iranian officials since June, and, according to Trump, was attended by his envoys Steve Witkoff and Jared Kushner.
Iran indicated it was prepared to reopen the Strait of Hormuz if Washington eased military pressure and lifted the blockade on Iranian ports, but Tehran has not confirmed that a final agreement was reached.
About one-fifth of the world's oil and liquefied natural gas supplies passed through the Strait of Hormuz before the conflict began. Recent tanker movements point to increased flows, despite continuing shipping risks.
Saudi Arabia restarts route bypassing Hormuz
Prices came under additional pressure after Saudi Arabia restarted the East-West Pipeline, which transports crude to the Red Sea port of Yanbu, bypassing the Strait of Hormuz.
The pipeline had been halted after a drone attack earlier in the month and has a capacity of about 7 million barrels per day. Returning to full operating capacity could take between six and eight weeks as repairs continue on damaged pumping stations.
Crude prices are also being pressured by signs that the risk of escalation between Washington and Tehran is receding, alongside an improved outlook for Middle East supply flows through the Strait of Hormuz and alternative routes.
