Crude oil prices fell for a sixth consecutive session on Wednesday (September 23), reaching their lowest level in two weeks as the reopening of a key Saudi oil pipeline raised expectations of increased crude supplies in the global market.

Brent crude, the international benchmark, fell by $1.09, or 1.1%, to $98.16 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude dropped $1.50, or 1.67%, to $89.01 a barrel.

Despite US President Donald Trump’s tough remarks over Iran, his representatives Steve Witkoff and Jared Kushner said they had held positive discussions with Iranian representatives through mediators. Following the talks in New York, hopes emerged in the market that the long-running conflict could come to an end. As a result, Brent crude fell below $100 a barrel on Tuesday for the first time since September 8.

Saudi Arabia had shut down its East-West oil pipeline on September 11 following drone attacks by Iraqi militias. The pipeline, which can transport around 4% of global oil demand, or about 4 million barrels per day, to the port of Yanbu while bypassing the Strait of Hormuz, was reopened on Tuesday. The move eased concerns over global oil supplies.

Meanwhile, Iraq’s Oil Minister Basim Mohammed said the country’s crude oil exports had risen above 3 million barrels per day. Efforts are also underway to increase exports through Turkey to 600,000 barrels per day.

In addition, US crude oil inventories increased by 1.8 million barrels in the week ending September 18. The rise in US stockpiles has also added pressure to the oil market.

Source: Reuters