Saudi Arabia restarts pipeline, oil prices fall on supply outlook

Oil prices continued to decline on Wednesday, September 23, driven by expectations of increased supply from the Persian Gulf after Saudi Arabia resumed operations of a key pipeline. Brent futures fell 1.1% to $98.16 per barrel, while WTI dropped 1.67% to $89.01, marking six consecutive sessions of losses. Saudi Arabia restarted the East-West pipeline to the Red Sea, redirecting about 4 million barrels per day, roughly 4% of global supply, to Yanbu. Iraq also plans to boost exports, with its oil minister announcing intentions to increase shipments through Turkey to over 600,000 barrels daily. US President Donald Trump renewed threats against Iran but also noted productive talks with Iranian intermediaries, giving traders hope for a potential deal. Analysts say the market is now pricing in the possibility of negotiations despite ongoing harsh rhetoric.