Oil: Prices retreat on Saudi exports and US data – ING
ING strategists Ewa Manthey and Warren Patterson note that Brent and WTI have sold off sharply as expectations of higher Saudi crude exports, progress in US-Iran talks and a surprise US inventory build ease Middle East supply concerns.
Oil prices retreated on Wednesday, as Saudi crude exports and US data aided by progress in US-Iran talks eased Middle East supply concerns. Brent and WTI both saw significant declines. Brent fell below $99 per barrel, while WTI traded around $89 per barrel. This sell-off marked six consecutive sessions of declines for Brent, the longest losing streak since August 2025, totaling over 9.5% cumulative losses.
Saudi Arabia's East-West pipeline has restarted operations, potentially resuming exports from the Yanbu terminal and helping restore global crude supplies. President Trump's recent positive discussions with Iranian officials also raised hopes for further diplomatic progress, lowering fears of prolonged disruptions.
Contrasting oil price movements, US natural gas prices rose due to lower production and cooler weather forecasts. The latest US petroleum data revealed a 1.7 million barrel increase in crude inventories, surpassing expectations of a 578,000 barrel draw. Gasoline and distillate stocks both fell by 2.2 million barrels.
Traders now await the Energy Information Administration's inventory report for further confirmation. The US Dollar remains firm, supported by the Federal Reserve's hawkish stance, providing additional support to the pair.
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