Oil prices steadied near $100 a barrel on Wednesday after signs of diplomatic progress between the U.S. and Iran and a restart at Saudi Arabia's east-west pipeline eased fears over Gulf crude flows. Brent crude rebounded past $100 following its first close below that level since September 8, while rising U.S. inventories capped further gains.
Brent Rebounds Past $100
By 08:06 ET (12:06 GMT), Brent crude futures rose 1.1% to $100.30 a barrel, while U.S. West Texas Intermediate futures inched up 0.1% to $90.64 a barrel. Both contracts had fallen more than 1% in the previous session, with Brent settling below $100 a barrel for the first time since September 8. Despite that pullback, oil prices remain more than 60% higher than at the start of the year, analysts at ING flagged.
Trump Points to Progress With Iran
According to Investing.com: President Donald Trump said on Tuesday he could "annihilate" Iran, but he also said his team held a productive three-hour meeting with Iranian representatives in New York. His remarks raised hopes that talks could eventually ease disruptions to Gulf oil flows. According to reports, Iran has indicated it could reopen the Strait of Hormuz within seven days if Washington eases military pressure and lifts its blockade of Iranian ports, though Tehran has not confirmed a firm agreement. The strait carried roughly one-fifth of global oil and liquefied natural gas supplies before the conflict began, and recent tanker movements suggest flows have increased, even as shipping risks stay elevated.
Saudi Pipeline Restart Cuts Reliance on Hormuz
Saudi Arabia has restarted its east-west pipeline, which moves crude oil to the Red Sea port of Yanbu and bypasses the Strait of Hormuz, after the line was shut following a drone attack earlier this month. The pipeline has a capacity of about 7 million barrels per day, though repairs to damaged pumping stations mean full capacity could take six to eight weeks.
Rising Inventories Add Downward Pressure
Additional pressure on prices came from data showing U.S. crude inventories rose by 1.7 million barrels last week, against forecasts for a 578,000-barrel draw, ING analysts said.
Source: Commodities & Futures News
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