Crude Oil Falls for 5th Session

Crude oil fell below $91 a barrel on Tuesday, extending losses into a fifth session and reaching the lowest level in more than two weeks, after reports suggested Iran could reopen the Strait of Hormuz if the US lifted its blockade of Iranian ports. Japan’s Kyodo News reported that Tehran had proposed reopening the strategic waterway within seven days of the blockade being lifted, potentially creating a basis for discussions with mediating countries during the UN General Assembly. President Donald Trump is due to address the assembly in New York and may meet Iranian President Masoud Pezeshkian on the sidelines. Meanwhile, Saudi Arabia has continued moving crude through Hormuz at around 2.9 million barrels per day over the past six days. Satellite imagery showed supertankers with combined capacity of about 14 million barrels at Saudi Gulf export terminals, the highest count observed since at least June.

Crude oil rose above $93 per barrel on Tuesday after falling for four straight sessions, as investors weighed whether renewed diplomatic efforts to end the US-Iran war could make progress and help restore energy flows from the Middle East. President Donald Trump is scheduled to address the UN General Assembly in New York later today and could meet with Iranian President Masoud Pezeshkian on the sidelines. Trump is also expected to hold discussions with other Gulf nations and Chinese President Xi Jinping this week. Meanwhile, the Trump administration has proposed a $5 billion fund to help rebuild infrastructure across the Middle East damaged by the war. Saudi Arabia, meanwhile, moved crude through the Strait of Hormuz at 2.9 million barrels per day over the past six days. Satellite images also showed supertankers with a combined capacity of 14 million barrels at Saudi Arabia’s Gulf export terminals over the weekend, marking the highest tanker count observed since at least June.

Crude oil fell below $95.5 a barrel on Monday, extending losses for a fourth session after US President Trump reportedly decided against bombing Yemen for now and indicated he was open to diplomacy with Iran. Trump reportedly rejected calls from Saudi Arabia to strike the Houthis and said he would probably be open to meeting Iranian President Masoud Pezeshkian during this week’s UN General Assembly in New York. Meanwhile, crude exports from the Middle East have proven resilient even after Saudi Arabia closed its East-West pipeline following attacks. Saudi Arabia moved crude through the Strait of Hormuz at 2.9 million barrels a day over the past six days. Satellite images showed supertankers with capacity for 14 million barrels at Saudi Arabia’s Gulf export terminals over the weekend, the highest tanker count observed since at least June. Overall, however, traffic through the Strait of Hormuz continued to decline.