Oil falls on increased Gulf supply and hopes for US-Iran talks

Oil prices declined on Wednesday as Saudi Arabia began to resume crude supply through a key pipeline to the Red Sea and on hopes for diplomatic solutions to the US-Iran conflict. Brent crude futures fell 7 cents, or 0.07%, to $99.18 a barrel while West Texas Intermediate futures dropped 35 cents, or 0.39%, to $90.17 per barrel. US President Donald Trump, who threatened to annihilate Iran, also mentioned productive talks with Iranian mediators at the UN in New York.

The optimism surrounding improved supply and the push to end the nearly seven-month conflict contributed to the benchmark Brent dropping below $100 a barrel for the first time since September 8. KCM Trade's chief analyst, Tim Waterer, noted that traders were feeling more constructive about the global oil supply picture, despite the continued tough rhetoric between the two nations.