Brent Tumbles to $96 as Gulf Oil Flows Bounce Back

Crude oil prices plummeted on Wednesday and maintained their decline earlier today, following reports from major banks indicating that oil flows out of the Persian Gulf had nearly returned to pre-war levels. Brent crude traded at $97.36 per barrel, a drop from over $103 the previous day, while West Texas Intermediate settled at $89.57 per barrel, down from over $90.

According to Kpler, oil exports from the Gulf region were at 80% of pre-war levels, while JP Morgan estimated exports at up to 98% of pre-war levels. Goldman Sachs went further, estimating oil flows from the Middle East at 23.3 million barrels per day, matching the average rate for 2025. The bank also noted that Saudi Arabia exported more oil in September than it did in September last year.

Analysts at Goldman Sachs explained the divergence between Iranian and other Persian Gulf exporters, attributing it to Saudi Arabia's increased output. Despite reports of Iranian attacks on tankers in the Strait of Hormuz, which were not picked up by major media outlets, prices did not react as they were expected to. The situation remains precarious, with oil flows improving but not yet safe.