Oil prices dipped by 1% on Thursday, driven by recovering crude exports from the Gulf and an unexpected rise in US inventories, which alleviated supply concerns. This development comes as investors are also considering renewed diplomatic efforts between the US and Iran aimed at resolving ongoing conflicts in the Middle East, as reported by Gulf Today.
Brent crude futures fell by 1.1% to $96.92 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.4% to $89.18 a barrel. Both benchmarks had seen an increase of approximately $1 per barrel on Wednesday. Notably, Brent recorded a monthly gain of around 14% in September, marking its largest increase since July, while WTI rose by about 5% during the same period.
Sugandha Sachdeva, founder of SS WealthStreet, a research firm based in New Delhi, indicated that the near-term outlook for oil remains negative. She attributed this to the recovery of shipments from the Gulf region, the resumption of Saudi exports through Yanbu, and a buildup in US inventories, which collectively ease supply concerns.
Saudi Arabia has resumed oil tanker loadings from Yanbu, following the restart of operations on its East-West Pipeline, as reported by Reuters. Concurrently, US crude inventories increased by 922,000 barrels to 427.3 million barrels for the week ending September 25, according to the Energy Information Administration. This rise contrasts with expectations from a Reuters poll, which had anticipated a draw of 264,000 barrels.
Sachdeva also noted that renewed diplomatic engagement between the US and Iran could potentially lower the geopolitical risk premium associated with oil prices, although she cautioned that a significant breakthrough remains uncertain. Iran announced on Wednesday that it had received a response from the US regarding its latest proposal to revive a collapsed ceasefire in the Gulf.
Despite these developments, US President Donald Trump denied reports suggesting he was willing to provide Iran with sanctions relief and release frozen Iranian funds in exchange for concrete actions on its nuclear programme.
Goldman Sachs has estimated that Gulf oil exports, including “dark exports” from ships with disabled location transponders, have rebounded to 23.3 million barrels per day over the past week, aligning with their 2025 average. This recovery follows a doubling of exports in September.
Additionally, OPEC+ oil-producing countries are expected to maintain their production targets for November during their upcoming meeting on Sunday, according to sources familiar with the matter.
Follow our Business news coverage for related developments.
