Crude Oil Holds Strong Above $96

Crude oil fell below $90 a barrel on Wednesday, extending losses for the sixth session, as markets assessed efforts to restore oil flows disrupted by the conflict in the Middle East. Saudi Arabia is preparing to restart exports through its critical East-West pipeline in the coming days, potentially allowing the kingdom to bypass the contested Strait of Hormuz and increase outbound shipments. At the same time, US President Donald Trump said American officials had held a “very productive” meeting with Iranian envoys and indicated that further talks were planned, despite his tough rhetoric toward Tehran during a United Nations speech. Meanwhile, the API reported a 1.8-million-barrel increase in nationwide crude stockpiles, while gasoline and distillate inventories declined. Investors are now awaiting official US Energy Information Administration data later Wednesday for further indications of supply and demand conditions.

Crude oil slipped below $90 per barrel on Wednesday, extending its decline to a sixth consecutive session as signs of progress emerged in renewed US-Iran talks and efforts continued to restore operations at a key pipeline in Saudi Arabia. President Donald Trump said officials held a “very productive” meeting with Iranian envoys, adding that he is weighing whether to pursue a negotiated agreement or “annihilate the Islamic Republic.” Trump is also expected to meet with other Persian Gulf leaders later this week. A senior Iranian government official said Tehran’s proposal had been conveyed to the US, suggesting that if Washington takes steps toward lifting the blockade that has severely curtailed Iranian oil exports, Iran would be prepared to reopen the Strait of Hormuz within seven days. Meanwhile, Saudi Arabia is seeking to restore oil exports through its vital East-West pipeline in the coming days, allowing Riyadh to resume using an alternative route around the Strait of Hormuz.

Crude oil fell below $90 a barrel on Tuesday, extending losses into a 5th session after President Trump said US officials had a very good meeting with Iranian envoys and that there was a lot of momentum toward a deal. In his UN address, Trump said he had a “big decision” to make on whether to seek a negotiated deal with Iran or “annihilate the Islamic Republic,” adding that he believed a deal would follow the election. Iran’s proposal has been conveyed to the US, according to a senior Iranian government official. It includes the resumption of talks aimed at permanently ending the hostilities. If the US were to take steps toward ending the blockade, which has been crippling Iranian oil exports, Iran would be prepared to reopen the Strait of Hormuz within seven days, the official said. Meanwhile, Saudi Arabia is reportedly preparing to restart its critical East-West pipeline, aiming to restore meaningful flows by Saturday. The pipeline was reportedly already pumping at a low rate.