Oil falls US$1 on better supply outlook, hopes for US-Iran talks

Oil prices slipped on Wednesday as better Gulf supply prospects and hopes for a US-Iran peace deal prompted a price drop. Brent crude futures fell 1.1 percent to $98.16 a barrel, while West Texas Intermediate futures fell 1.67 percent to $89.01 per barrel. Both contracts had declined for six straight sessions to near two-week lows.

Despite President Trump's threats to annihilate Iran, he indicated his envoys Steve Witkoff and Jared Kushner had productive talks with Iran's mediators to end the war. Traders were optimistic about the improved supply outlook and the push to resolve the nearly seven-month conflict. The market seemed more constructive about global oil supply than before, according to Tim Waterer, chief analyst at KCM Trade.

Saudi Arabia restarted operations on its East-West Pipeline to the Red Sea after cutting off crude shipments via the pipeline on September 11. Iraqi crude exports were also rising, with the country exporting more than 3.0 million barrels per day and aiming to increase shipments via Turkey to over 600,000 bpd. US crude inventories rose by 1.8 million barrels in the week to September 18, contrary to analysts' expectations of a decline.