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Emirates News Agency reported that oil benchmarks fell as crude flows from the Middle East improved following the restart of Saudi Arabia’s East-West pipeline. Industry data cited in multiple outlets showed increased shipments through the Strait of Hormuz, which had been disrupted by the regional conflict that erupted in late February. A Reuters assessment found that these developments helped ease supply concerns that had previously driven prices higher, with Brent crude futures for November delivery closing at $99.25 a barrel after a drop of $1.09. The decline marked the fifth consecutive session of losses for the global benchmark.
West Texas Intermediate futures for October fell to $94.99 a barrel according to the same Reuters report, extending a losing streak that Bloomberg data places as the longest since August 2025. The pullback comes after oil prices surged earlier in the year amid attacks that damaged key infrastructure and restricted tanker movements out of the Persian Gulf. Bloomberg figures show Brent had climbed nearly 50 percent from year-earlier levels before the recent reversal, reflecting the market’s acute sensitivity to Middle East tensions that account for roughly one-fifth of global supply under normal conditions.
Hopes for de-escalation through talks at the United Nations General Assembly added further downward pressure on prices, a Bloomberg analysis indicated. US officials signaled productive preliminary discussions with Iranian mediators even as President Trump noted that a full agreement might not materialize until after midterm elections. The combination of restored Saudi export routes to the Red Sea port of Yanbu and these diplomatic signals reversed some of the risk premium that had accumulated since the conflict began.
US crude inventories rose by 1.8 million barrels in the week ending September 18 according to preliminary industry data reported by Reuters, contrary to analyst expectations of a decline. The Energy Information Administration was set to release its official weekly inventory report later on September 23, providing a clearer picture of domestic supply trends. Such builds have compounded the bearish outlook as markets shift focus from potential shortages to the prospect of adequate or even surplus barrels in coming months.
The International Energy Agency projected in its September 2026 Oil Market Report that world oil demand would fall by 2.5 million barrels per day this year, a steeper contraction than previously forecast due to the conflict’s economic ripple effects. Supply estimates were similarly revised lower for 2026 with full Middle East recovery now anticipated no earlier than 2027, the agency reported. These longer-term outlooks have encouraged traders to price in a more balanced market once immediate disruptions subside.
Despite the recent slide, oil prices remain elevated compared with pre-conflict levels, Reuters noted in its coverage of the session. Market participants will monitor upcoming UN meetings closely for any concrete breakthroughs that could further influence supply forecasts. Additional factors such as China’s economic indicators and OPEC production decisions are expected to shape trading in the weeks ahead as the market recalibrates.
