Oil prices slip further as Gulf exports recover

Oil extended losses Wednesday as signs of a continued recovery in Persian Gulf crude exports eased some supply concerns, though risks to regional energy infrastructure and shipping persist.

Oil extended losses Wednesday as concerns about the flow of supplies from the Middle East eased.December Brent crude futures fell 0.9% to $95.31 a barrel, while West Texas Intermediate futures dropped 0.6% to $86.76 a barrel. Both contracts also declined Tuesday, when signs of recovering Saudi and broader Middle East oil exports eased some concerns over disrupted regional supplies.

Persian Gulf oil exports have likely recovered to 23.3 million barrels a day in the week through Sept. 29, roughly in line with their 2025 average, Goldman Sachs analysts said in a note Tuesday. Increased exports through the Strait of Hormuz, including ship-to-ship transfers, have supported the recovery despite disruptions to Saudi Arabia’s East-West pipeline. Still, Goldman said crude prices remain elevated because of risks that an escalation could threaten longer-term production alongside record-low global oil inventories.

Saudi crude exports rose to 5.8 million barrels a day in September, the highest since February, according to ANZ Research. Flows through the kingdom’s East-West pipeline are recovering faster than anticipated and Saudi Arabia has resumed loading vessels at the Red Sea port of Yanbu, the analysts said.

Meanwhile, Yemen’s Iran-backed Houthi militia have stepped up attacks in the Red Sea, expanded their footprint along the Yemeni coast and asserted control over the Bab al-Mandeb Strait, a key energy-shipping corridor that helps bypass the Strait of Hormuz, The Wall Street Journal reported Wednesday.

The U.S. Energy Department separately said Tuesday it is seeking bids for an exchange of up to 40 million barrels of crude from the Strategic Petroleum Reserve. The solicitation continues the U.S.’s planned 172-million-barrel contribution to a coordinated 400-million-barrel release by International Energy Agency member countries, with deliveries under the latest awards scheduled for November and December.

Write to Farhan Rafid at farhan.rafid@wsj.com