Oil dips as recovering Gulf exports ease supply fears, US-Iran diplomacy in focus

Oil prices fell 1% on Thursday as recovering crude exports from the Gulf and a ​surprise rise in US inventories eased supply concerns, while investors weighed renewed ‌US-Iran diplomatic efforts to end their conflict in the Middle East. Brent crude futures fell 1.1% to $96.92 a barrel, and US West Texas Intermediate crude dropped 1.4% to $89.18 a barrel. Both benchmarks rose about $1 ​a barrel on Wednesday. Brent recorded a monthly gain of around 14% in ​September, its biggest since July, while WTI increased by about 5% on ⁠the month. "Oil's near-term bias remains negative as recovering shipments from the Gulf region, resumed ​Saudi exports through Yanbu and a buildup in US inventories ease supply concerns," said Sugandha ​Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm. Saudi Arabia resumed oil tanker loadings from Yanbu, Reuters reported on Tuesday, after earlier restarting operations on its East-West Pipeline. Meanwhile, US crude inventories rose by 922,000 barrels ​to 427.3 million barrels in the week ended September 25, the Energy Information Administration ​said, compared with expectations in a Reuters poll for a 264,000-barrel draw. Read: Oil gains after Trump denies he is willing to ease sanctions on Iran "Renewed US-Iran diplomatic engagement could further ‌reduce ⁠the geopolitical risk premium, although a breakthrough remains uncertain," Sachdeva said. Iran said on Wednesday it had received a US response to its latest proposal to resurrect the collapsed ceasefire in the Gulf. US President Donald Trump denied reports by Axios and CNN, however, that cited US officials ​as saying he was ​willing to give ⁠Iran sanctions relief and release frozen Iranian funds in return for "concrete" steps by Tehran on its nuclear programme. Goldman Sachs estimates Gulf oil ​exports, including "dark exports" involving ships operating with their location transponders turned ​off, have ⁠recovered to 23.3 million barrels per day over the last week, in line with their 2025 average, as exports doubled in September, it said in a note on Tuesday. Also, OPEC+ oil-producing ⁠countries are ​likely to keep their oil production targets steady for ​November when they meet on Sunday, two people with knowledge of the matter told Reuters.