Brent Slips Below $99 as U.S.-Iran Talks, Saudi Export Hopes Ease Supply Fears
Brent November futures fell 53 cents to $98.72 a barrel as reported diplomatic progress and hopes for a Saudi pipeline restart eased near-term supply concerns.
Brent crude futures fell below $99 a barrel as reported progress in U.S.-Iran talks and a reported restart of Saudi Arabia’s East-West pipeline reduced immediate concerns about regional supply disruptions.
Brent November futures stood at $98.72 a barrel at 10:22 p.m. ET Sept. 22 (02:22 UTC Sept. 23), down 53 cents from the previous settlement. West Texas Intermediate November futures fell 80 cents to $89.72.
Brent settled below $100 for the first time since Sept. 9 and was down about 6% from the start of the week. The contract briefly traded below $98 on Sept. 22 before recovering to $100.19 at 12:50 p.m. ET.
The move followed reported progress in discussions between the United States and Iran, along with a reported, unconfirmed restart of Saudi Arabia’s East-West pipeline. The route links oil facilities in the kingdom’s east with Yanbu on the Red Sea, allowing exports to bypass the Strait of Hormuz. It has capacity of about 7 million barrels per day.
President Donald Trump described a three-hour meeting between U.S. and Iranian representatives at the United Nations as “very good” and “very productive.” Trump also said, “I will never allow Iran to have a nuclear weapon.”
Saudi Arabia shut the pipeline as a precaution after attacks on Sept. 10. Its reported restart raised expectations that additional Saudi crude exports could resume through Yanbu, even as the Strait of Hormuz remained closed.
The reported developments did not include a final U.S.-Iran agreement or a confirmed reopening of the strait.
