Oil falls as Middle East exports recover easing supply worries
Oil prices were lower, as concerns over stalled U.S.-Iran talks were offset by a rebound in Mideast oil exports
Oil fell Thursday as a recovery in Mideast oil exports helped offset concerns over stalled U.S.-Iran talks.
Futures for international benchmark Brent crude for December delivery slipped 1.09% to $96.96 a barrel. U.S. West Texas Intermediate futures for November dropped 1.32% to $89.24 per barrel.
UOB in a note Thursday said that crude flows from Middle East were reportedly nearing pre-war levels, but fuel supplies, particularly gasoline, were lagging behind.
Worries over crude supply disruptions have eased following the resumption of oil tanker loadings by Saudi Arabia from its Red Sea port of Yanbu after the kingdom restarted operations on its East-West Pipeline.
"The pipeline has done much of the heavy lifting when it came to moving crude out of the Gulf," given that Iran has blocked the Strait of Hormuz, said David Morrison, senior market analyst at Trade Nation on Wednesday.
"Analysts say that the pipeline is nowhere near running at full capacity. But the fact that it is open provides some relief and has helped oil prices retreat," Morrison added.
Traders continue to keep a close eye on developments in the Middle East amid concerns that a lasting resolution to the Iran conflict may be delayed, with U.S. Secretary of State Marco Rubio ordering the Iranian delegation visiting America to leave as the UN General Assembly was over, according to MS Now.
U.S. and Iranian officials had reportedly held separate indirect talks with mediators on Monday, while in New York for the UNGA.
