Crude oil price falls $1 on better supply outlook amid hopes for US-Iran talks

Crude oil prices dipped $1 on Wednesday as investors focused on enhanced Gulf supply following Saudi Arabia's resumption of operations at a key pipeline. Optimism surrounding potential US-Iran talks also contributed to the decline. Brent crude futures dropped $1.09, or 1.1%, to $98.16 a barrel, while West Texas Intermediate futures decreased $1.50, or 1.67%, to $89.01 per barrel.

These contracts had fallen for six straight sessions, nearing two-week lows. President Donald Trump hinted at the prospect of talks with Iran, stating that his envoys Steve Witkoff and Jared Kushner had productive discussions with mediators. Brent prices have fallen below $100 a barrel for the first time since September 8, driven by optimism about improved supply and the potential for an end to the conflict.

Saudi Arabia restarted operations on its East-West Pipeline to the Red Sea, increasing Middle Eastern oil flows to around 4 million barrels per day, which makes up about 4% of global supply. Iraq has also boosted its oil exports, with the country exporting over 3 million barrels per day and aiming to increase that to over 600,000 bpd via Turkey.

Meanwhile, US crude inventories increased by 1.8 million barrels in the week to September 18, surpassing analysts' expectations of a decline.