Brent crude futures lost 1.1% to $96.92 per barrel at 0420 GMT, while US West Texas Intermediate crude dropped 1.4% to $89.18 per barrel. Both benchmarks gained by around $1 per barrel on Wednesday. Brent gained 14% in September, the highest since July, while WTI jumped by 5% on the month.”Oil’s near-term bias remains negative as recovering shipments from the Gulf region, resumed Saudi exports via Yanbu, and a buildup in US inventories alleviate supply concerns,” said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research business.
Saudi Arabia began oil ship loadings from Yanbu on Tuesday, after restoring operations on the East-West Pipeline. In the week ending September 25, US crude stockpiles increased by 922,000 barrels to 427.3 million barrels, above forecasts of a 264,000-barrel drop from a Reuters poll. According to Sachdeva, renewed diplomatic interaction between the US and Iran may reduce the geopolitical risk premium, but a breakthrough is still uncertain.
Iran announced on Wednesday that it has received a response from the US over its proposal to revive the Gulf ceasefire. US President Donald Trump disputed allegations from Axios and CNN that he was willing to provide Iran sanctions relief and free blocked assets in exchange for “concrete” moves from Tehran on its nuclear program.
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