Oil prices fell on Thursday as recovering crude exports from the Gulf and an unexpected increase in US inventories eased supply concerns, while markets monitored renewed diplomatic efforts between the US and Iran.
Brent crude futures declined 1.1 per cent to $96.92 a barrel by 0420 GMT, while US West Texas Intermediate crude fell 1.4 per cent to $89.18 a barrel. Both benchmarks had risen by about $1 a barrel in the previous session.
Brent gained around 14 per cent in September, its strongest monthly increase since July, while WTI rose about 5 per cent during the month.
Gulf Oil Flows Recover
Saudi Arabia has resumed tanker loadings from Yanbu after restarting operations on its East-West Pipeline. The recovery in Gulf shipments has helped ease concerns over crude availability.
Goldman Sachs estimated that Gulf oil exports, including shipments involving vessels operating without location transponders, recovered to 23.3 million barrels per day over the past week, broadly in line with their 2025 average. The bank said exports doubled during September.
US crude inventories also increased by 922,000 barrels to 427.3 million barrels in the week ended September 25, according to the Energy Information Administration. A Reuters poll had expected inventories to decline by 264,000 barrels.
Oil markets were also tracking renewed US-Iran diplomatic engagement. Iran said it had received a US response to its latest proposal aimed at reviving the collapsed ceasefire in the Gulf.
US President Donald Trump, however, denied reports that cited US officials as saying Washington was prepared to offer Iran sanctions relief and release frozen Iranian funds in exchange for steps by Tehran on its nuclear programme.
OPEC+ producers are also expected to keep their oil production targets unchanged for November when they meet on Sunday, according to two people familiar with the matter.
(Reuters inputs)