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

Oil prices declined on Wednesday as Saudi Arabia restarted a pipeline to the Red Sea and traders remain hopeful of a resolution to the ongoing US-Iran conflict through talks at the UN. Brent crude futures dropped 7 cents to $99.18 a barrel, while West Texas Intermediate futures slipped 35 cents to $90.17 per barrel. President Trump warned that he could annihilate Iran, but his envoys, Steve Witkoff and Jared Kushner, had productive discussions with Iranian mediators in an attempt to end the war.

Trump expressed optimism about the prospects of a deal, stating, "I think there's a lot of momentum for them to make a deal." The market is currently more constructive about global oil supply than it was a few weeks ago, according to Tim Waterer, chief analyst at KCM Trade. The meeting between US and Iranian delegations in New York has given traders some hope, despite the ongoing tough rhetoric and threats of annihilation.

Saudi Arabia resumed operations on its East-West Pipeline to the Red Sea on September 23, signaling an increase in Middle Eastern oil flows.