Oil Prices Slide as Gulf Exports Recover and US Inventories Rise

Oil prices fell about 1 percent on Thursday as the recovery in crude exports from the Gulf eased concerns about supply disruptions, while an unexpected increase in US inventories added pressure to the market. Investors were also watching renewed diplomatic contacts between the United States and Iran aimed at ending the conflict in the Middle East.

Brent crude futures fell 1.1 percent to $96.92 a barrel by 7:20 a.m. Saudi time, while US West Texas Intermediate crude declined 1.4 percent to $89.18 a barrel.

Both benchmarks had gained about $1 a barrel on Wednesday. Brent was on track for a monthly increase of around 14 percent in September, its strongest monthly gain since July. WTI was up about 5 percent for the month.

“Oil’s near-term bias remains negative as recovering shipments from the Gulf region, resumed Saudi exports through Yanbu and a buildup in US inventories ease supply concerns,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet.

Saudi Arabia resumed oil tanker loadings from Yanbu earlier this week after restarting operations on its East-West Pipeline, according to Reuters. The return of exports through the Red Sea port has helped improve expectations for crude availability following earlier disruptions.

US crude inventories also added to the downward pressure on prices. Stockpiles increased by 922,000 barrels to 427.3 million barrels in the week ended September 25, the Energy Information Administration said. Analysts surveyed by Reuters had expected inventories to fall by 264,000 barrels.

Markets were also assessing signs of renewed diplomatic engagement between Washington and Tehran. Iran said on Wednesday that it had received a US response to its latest proposal aimed at reviving a collapsed ceasefire in the Gulf.

US President Donald Trump denied reports from Axios and CNN that cited US officials as saying Washington was prepared to offer Iran sanctions relief and release frozen Iranian funds in exchange for concrete steps by Tehran on its nuclear programme.

“Renewed US-Iran diplomatic engagement could further reduce the geopolitical risk premium, although a breakthrough remains uncertain,” Sachdeva said.

Goldman Sachs said Gulf oil exports, including shipments involving vessels that have switched off their location transponders, had recovered to 23.3 million barrels per day over the past week. The bank said the level was broadly in line with the 2025 average, with exports doubling during September.

Meanwhile, OPEC+ producers are expected to keep their oil production targets unchanged for November when the group meets on Sunday, according to two people familiar with the matter.