Oil Prices Fall in Global Market
Crude oil prices have fallen slightly in the global market. On Wednesday (September 23), Brent crude futures fell by 7 cents, or 0.07 percent, to $99.18 per barrel. At the same time, the price of US West Texas Intermediate (WTI) crude declined by 35 cents, or 0.39 percent, to $90.17 per barrel.
Reuters reported that concerns over crude oil supplies in the international market have eased somewhat after Saudi Arabia resumed operations on the key East-West Pipeline. The pipeline plays an important role in transporting oil from the country’s eastern oil fields to the Red Sea port of Yanbu.
Oil supplies through the port of Yanbu were disrupted after the pipeline was damaged in an attack earlier this month. The resumption of supplies has raised the possibility of increased oil flows from the Middle East to the global market. As a result, market concerns over supply shortages have eased somewhat.
Another factor putting downward pressure on oil prices is diplomatic efforts to resolve the US-Iran conflict. As the possibility of talks between the two sides emerged on the sidelines of the United Nations General Assembly session in New York, expectations of a reduction in the conflict increased in the market. Investors also see the possibility of the Middle East oil supply situation returning to normal.
According to a Reuters report, Brent prices fell below $100 on Tuesday and ended trading below that level for the first time since September 8. At the same time, US crude oil inventories also increased, creating additional pressure on prices.
