Oil set for longest losing run in a year on pipeline hopes, talks

Oil is on track to endure its longest losing streak of the year, following Saudi Arabia's plans to resume oil exports through a vital pipeline and reported progress in US-Iranian talks aimed at ending the Middle East conflict. Brent crude slipped toward $98 a barrel, down six days in a row, marking its largest decline since August 2025, prior to Washington's joint airstrike on Iran with Israel.

West Texas Intermediate for November slipped below $90. In the Middle East, Saudi Arabia seeks to restore oil flows via its crucial East-West pipeline, capable of transporting 7 million barrels daily, which was damaged by recent attacks. President Trump said the meeting with Iranian representatives was "very productive", although he had threatened to obliterate Iran in a UN speech.

Further discussions are scheduled. Oil has still gained over 60 percent this year due to ongoing attacks disrupting shipments through Hormuz, the world's most critical energy chokepoint, which has driven up inflation, with product costs rising even more than crude. President Trump encouraged his aides to advocate for a ban on US diesel exports.

Trump plans to meet officials from the Gulf states, Syria, Iraq, Jordan, and Turkey, as well as US special envoys Steve Witkoff and Jared Kushner, who took part in the meeting with Iranian envoys. Despite multiple attempts to quell the war between Washington and Teheran, no success has been achieved. An interim peace deal was only in effect briefly.

Since then, the US has imposed a blockade on Iran's ports, impeding energy export revenues. Iran retaliated by attacking ships in Hormuz. Even after six months of conflict, both sides disagree on crucial issues, like Hormuz, which Teheran controls, while Washington insists its status remains unchanged. Apart from the Iran-US standoff, there have been battles between Iranian-backed Houthi rebels in Yemen and Saudi Arabia.

The group has targeted energy assets in the kingdom and made advances against local rivals along the Red Sea toward the Bab el-Mandeb chokepoint. Traders also reviewed a mixed report from the American Petroleum Institute, noting a 1.8-million-barrel increase in crude inventories nationwide, but declines in petrol and distillates. Official data will be released later Wednesday.