Crude Oil Snaps 5-Day Losing Streak

Crude oil rose above $92 a barrel on Wednesday after five consecutive sessions of losses, as uncertainty persisted over whether a formal agreement to reopen the Strait of Hormuz was possible. Iran’s President Pezeshkian used his address to the UN General Assembly to reject restrictions on Iran’s civilian nuclear program and reiterate Tehran’s opposition to a US military presence in the Middle East. He also said Iran remained open to dialogue and diplomacy but would not accept negotiations under pressure. Meanwhile, Saudi Arabia is preparing to restart exports through its East-West pipeline in the coming days. On the supply side, US crude inventories rose by 2.969 million barrels to 426.4 million barrels last week, according to the EIA, compared with expectations for a 641,000-barrel draw. The increase exceeded the 1.8-million-barrel build reported by the API, while gasoline and distillate stocks declined.

Crude oil fluctuated around $90 a barrel on Wednesday, after five consecutive sessions of losses, 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.