Oil prices settle lower as crude flows from Middle East improve

Oil prices retreated on Tuesday (Sep 22) as Saudi crude flows ramped up due to the East-West pipeline's restart and increased ship movements through the Strait of Hormuz, according to wire material. Brent and U.S. crude pared their steepest losses of the day after President Donald Trump dismissed hopes for an immediate peace deal, stating one would materialize after the U.S. midterm elections in early November.

Trump also warned he could "annihilate" Iran if no deal was reached, and he was set to meet with world leaders at the UN General Assembly in New York this week. Brent crude futures for the November contract closed at $99.25 a barrel, down $1.09, or 1.09%, while the WTI October contract finished at $94.99 a barrel, down $1.19, or 1.24%.

Both contracts saw their lowest points dip over $2 a barrel. Analysts noted that Saudi Arabia's actions, not waiting, were evident, with Aramco loading 14 million barrels onto seven VLCCs inside the Gulf after the Houthi attack forced the shutdown of the East-West pipeline. The Strait of Hormuz, which once handled 20% of global oil and liquefied natural gas supplies, could see Iranian reopening within seven days if the U.S. eases military pressure and lifts its blockade on Iranian ports.